Texas Retail Electric Provider Fined $85,000 for Violating Customer Protection Standards

Stream SPE Ltd agreed to pay an administrative penalty for infringing on rules governing payment plans for outstanding customer bills, according to an April 23 settlement filed by the Texas Public Utility Commission staff. The agreement resolves claims related to the investigation into nearly 4,000 improperly applied switch-holds placed on customer accounts between Jan. 1, 2016 and Oct. 9, 2017.

Texas retail electric providers are allowed to place a switch-hold if a customer voluntarily enters into a “deferred payment plan,” which facilitates payment of an outstanding balance in installments that extend beyond the due date of the current bill. Customers who enter such an agreement are under a switch-hold, which is released upon the supplier’s request after the payment is complete.

The provision does not apply for a payment arrangement, which allows customers to pay outstanding bills after the due date, but by the due date of the next bill. The commission staff found that Stream SPE violated obligations relating to customer protection standards by initiating switch-holds on customer accounts where the last payment was due on the date of the next invoice and not after that date. The supplier agreed to cease the practice of placing switch-holds on accounts with these payment terms and release customers currently under the hold with similar terms.