Electric provider to pay $223,000 penalty

[Dan]

Affordable Power Plan settles disconnection violations caseContact:Terry Hadley 512-936-7135Pager: 512-322-1457Thursday, Oct. 26, 2006 -- The Public Utility Commission (PUC) on Thursday approved a settlement agreement requiring Affordable Power Plan, LP (APP) to pay a $223,000 penalty in a case where PUC staff alleged the company failed to properly notify customers before disconnecting their electric service.The settlement agreement involves customers of APP's prepaid electric service that were disconnected between Aug. 1 and Oct. 31, 2005.PUC staff alleged that APP did not have the authority to authorize disconnection of customers before Oct. 31, 2005, and that APP did not send required disconnection notices when customers missed payment deadlines. PUC staff also alleged that APP failed to respond to requests for information from the PUC within 15 days as required.APP agreed to pay a $223,000 administrative penalty to settle the case without admitting the violations. In addition to the penalty, APP must immediately begin sending proper disconnection notices to customers before authorizing disconnections of the customers.Disconnecting electric customers without proper notification and authority is a serious violation. In addition to the economic hardship it creates, it can cause health and safety hazards that can be life-threatening, especially for ill and disabled customers.APP operates in the competitive electric market in Texas and was certified as a retail electric provider on March 3, 2005. The company is based in Houston.