PUCT assesses $930,462­ in penalties for electric rule violations

AUSTIN The Public Utility Commission of Texas (PUCT) assessed $930,462 in penalties, secured $1,592,565 in customer refunds, and required a $110,515 donation to a customer bill assistance program for violations of electric rules at its open meeting this week. The Commission has primary oversight and economic regulatory authority over the state’s electricity, water, and telecommunications industries.

The Commission approved settlement agreements in four separate dockets:

  • Docket No. 56609: A settlement agreement with a transmission and distribution utility (TDU) for rule violations related to electric service quality (PURA § 38.005; 16 TAC §§ 25.52(g)(1)(A) and 25.52(g)(1)(B)). The TDU agreed to pay a $20,000 administrative penalty.
  • Docket No. 56637: A settlement agreement with a retail electric provider (REP) for rule violations related to engaging in unfair or misleading practices by assessing disconnection notice fees exceeding the amount specified in its issued Terms of Service (PURA §§ 17.004(a)(1) and 39.101(b)(6); 16 TAC § 25.475(c)(1)(A)). The REP refunded $1,592,565 to affected customers, made donations totaling $110,515 to bill payment assistance agencies, and agreed to pay a $255,462 administrative penalty.
  • Docket No. 56673: A settlement agreement with a qualified scheduling entity (QSE) for rule violations related to engaging in prohibited activity and operating resources in a manner inconsistent with ERCOT procedures, which are designed to support the efficient and reliable operation of the ERCOT electric system (16 TAC § 25.503(e)(2)). The QSE made changes to prevent future violations and agreed to pay a $475,000 administrative penalty.
  • Docket No. 56925: A settlement agreement with a power generation company for rule violations related to its failure to provide adequate voltage support service (PURA § 39.151(j), 16 TAC § 25.503(f)(2) and ERCOT Nodal Protocols §§ 3.15(4)(d) and 6.5.7.7(5)). The company agreed to pay a $180,000 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 week’s open meeting is available here on the PUCT website. The next PUCT open meeting is scheduled for Thursday, Nov. 14, 2024.