Public Utility Commission of Texas assesses nearly $425,000 in penalties for electric, water rule violations

AUSTIN The Public Utility Commission of Texas (PUCT) assessed $424,500 in penalties, secured $66,912 in market refunds, and approved a $100,000 customer assistance donation related to violations of electric and water rules at its open meeting Thursday. The Commission has primary oversight and economic regulatory authority over the state’s electricity, water, and telecommunications industries.

The Commission approved settlement agreements in seven separate dockets:

  • Docket No. 56213: A settlement agreement with a water utility for rule violations related to using confusing language on customers’ bills (TWC §§ 13.135 and 13.136(a) and 16 TAC § 24.165(a)). The utility agreed to pay an administrative penalty of $20,000.
  • Docket No. 55953: A settlement agreement with an electric cooperative for rule violations related to weather preparedness declaration requirements in 2022 and 2023 (of 16 TAC § 25.55(f)(3)(A) and (B)). The cooperative agreed to pay an administrative penalty of $4,500.
  • Docket No. 56111: A settlement agreement with a real estate company for rule violations related to the unauthorized resale of electricity and denying tenants’ their right to choose their own retail electric providers (PURA §§ 17.004(a), 39.102, 39.107, and 39.352(a) and 16 TAC § 25.107(a), 25.474, and 24.475). The company agreed to pay an administrative penalty of $200,000.
  • Docket No. 56246: A settlement agreement with a retail electric provider for rule violations related to disconnection of customers for nonpayment during extreme weather emergencies (PURA § 39.101(h), and 16 TAC §§ 25.483(b)(2)(B), and 25.483(j). The provider agreed to pay an administrative penalty of $100,000 and make a $100,000 donation to a bill payment assistance program.
  • Docket No. 56249: A settlement agreement with a municipally owned utility for rule violations related to inaccurate telemetering (PURA § 39.151(j); 16 TAC §§ 25.503(e)(3) and (f)(2); and ERCOT Nodal Protocols § 6.4.6(1), Scheduling and Operation of Generation Resources). The utility agreed to repay $24,900.34 in excess revenues it received as a result of the violation. The Electric Reliability Council of Texas (ERCOT) will distribute the repaid revenue using a method approved in Docket No. 54985.
  • Docket No. 56311: A settlement agreement with a municipally owned utility for rule violations related to inaccurate telemetering (PURA § 39.151(j); 16 TAC §§ 25.503(e)(3), (f)(2), (f)(6), and (f)(8); and ERCOT Nodal Protocols § 6.4.6(1), Scheduling and Operation of Generation Resources). The utility agreed to repay $42, 012.60 in excess revenues it received as a result of the violation. ERCOT will distribute the repaid revenue using a method approved in Docket No. 54985.
  • Docket No. 56337: A settlement agreement against a retail electric provider for rule violations related to pricing of a prepaid product (16 TAC § 25.498, Prepaid Service). The provider agreed to pay a $100,000 administrative penalty.

Administrative penalty payments are made to the PUCT and are ultimately deposited into the state’s general fund. Typically, payments must be made within 30 days of the signed final order.

A recording of this open meeting is available here on the PUCT website. The next PUCT open meeting is scheduled for Thursday, May 23, 2024.