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NRG retail electric companies fined for violating state rule

Retail electric companies can prevent clients from switching until their final bills have been processed, butan  investigation by the Texas Public Utilities Commission found that  Reliant Energy, Green Mountain Energy and U.S. Retailers  found that the companies were imposing arbitrary waiting periods on clients before clearing a company switch, forcing some customers who had already paid their bills to wait several days before switching electric companies. The investigation stemmed from complaints filed in 2013.

The companies argued that the PUC’s rules do not stipulate that imposing a waiting period is a violation.

“We stand for and go above and beyond what is required to help customers with bill pay assistance,” said Dave Knox, a spokesman for NRG. “We also stand for complying with all rules and regulations that govern our business. We are pleased that the settlement agreement has been approved and this issue resolved”

The companies were notified of the fines on Nov. 21, and the PUC approved a settlement with the companies during a Friday meeting.

These so-called switch-hold practices are unpopular with consumer advocates because they restrict consumer choice,  said Jake Dyer, a policy analyst for the Texas Coalition for Affordable Power, a non-profit advocacy group. Dyer, who was not familiar with this particular case, said he was pleased to hear that the PUC is making sure that the rule is not abused.

The PUC has also ordered that the companies offer a collective $1.3 million in bill payment assistance for low-income customers in 2016.

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