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Re:  Settlement Agreement And Report To The Commission Regarding Young Energy, LLCs Alleged Violations Of Pura § 39.101(H), Related To Customer Safeguards And 16 TAC §§ 25.483(B)(2)(B), Related To Disconnections Of Service, And 25.483(J), Related To Disconnection Of Service
The Staff of the Public Utility Commission of Texas (Commission) and Young Energy, LLC (Young) (collectively, the parties) enter into this settlement agreement and file this joint report to the Commission under 16 Texas Administrative Code (TAC) § 22.246(h)(1). The agreement resolves and concludes Commission Staff’ s investigation of Young concerning alleged violations of Public Utility Regulatory Act (PURA)1 § 39.101(h), relating to customer safeguards, and 16 TAC §§ 25.483(b)(2)(B), related to disconnection of service, and 25.483(j), related to disconnection of service.

16 TAC # 25.483(b)(2)(B) – related to disconnection of service

5. On April 25,2005, the Commission approved Young’s application for a REP certificate.
6. Under 16 TAC § 25.483(b)(2)(B), prior to authorizing disconnections for non-payment of residential and small non-residential customers, a REP shall file an affidavit from an officer of the company, in a project established by the Commission for this purpose, affirming that the REP understands and has trained its personnel on the Commission’ s rule requirements related to disconnection and reconnection, and has adequately tested all necessary electronic transactions related to disconnections and reconnections of service. 
7. On May 20, 2004, the Commission opened Project No. 29760, which is the project established by the Commission for the filing of affidavits in accordance with 16 TAC § 25.483(b)(2)(B).4 
8. Young did not file the affidavit required under 16 TAC § 25.483(b)(2)(B) in Project No. 29760 until October 6,2023.5 
9. Commission Staff alleges that Young violated 16 TAC § 25.483(b)(2)(B) by failing to file the required affidavit before authorizing disconnections for nonpayment of residential and small non-residential customers. 
10. A REP’s violation of 16 TAC § 25.483(b)(2)(B) is a Class B violation under 16 TAC § 25.8(b)(2).
11. Under PURA § 39.101(h), a REP may not disconnect service to a residential customer during an extreme weather emergency or on a weekend day. 
12. Under 16 TAC § 25.483(j), a REP having disconnection authority under the provision of subsection (b) of that section shall not authorize a disconnection for nonpayment of electric service for any customer in a county in which an extreme weather emergency occurs. 
13. An “extreme weather emergency” is defined in 16 TAC § 25.483(j)(1) as a day when “the previous day’s highest temperature did not exceed 32 degrees Fahrenheit, and the temperature is predicted to remain at or below that level for the next 24 hours anywhere in the county, according to the nearest National Weather Service (NWS) reports; or the NWS issues a heat advisory for a county, or when such advisory has been issued on any one of the preceding two calendar days in a county.” 
14. Commission Staff asserts that from November 1,2020, through September 1,2022, Young requested the disconnection for nonpayment of electric service for 1,819 customers located in counties affected by extreme weather emergencies to be completed during the pendency of the emergency. 
15. Commission Staff asserts that the transmission and distribution utilities that allegedly received Young’s requested disconnections for nonpayment did not complete any of the requested disconnections, and no customer was disconnected. 
16. Commission Staff alleges that Young violated PURA § 39.101(h) and 16 TAC § 25.483(j) when it requested 1,819 disconnections for non-payment during extreme weather emergencies to be completed during the pendency of the emergencies for ESI IDs in counties affected by the emergencies. 
17. Commission Staff asserts that the violations alleged herein are Class A violations under 16 TAC § 25.8(b)(3)(B).

Excerpt From Settlement Terms:
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22. Commission Staff recommends, and Young agrees to pay, a total administrative penalty of $100,000 and to make a a total donation of $100,000 to the City of Fort Worth’s Community Action Partners, a charitable organization that provides utility bill payment assistance to low-income individuals, in resolution of the alleged violations discussed in this agreement and in the attached proposed order. Young agrees to pay the administrative penalty in eight monthly installments of $12,500 each to the Commission beginning no later than 30 days after the Commission enters a final, signed order in the proceeding. Young agrees to make the charitable donation in eight monthly installments of $12,500 each to the City of Fort Worth’ s Community Action Partners beginning no later than 30 days after the Commission enters a final, signed order in the proceeding. Young agrees to file an affidavit attesting to full and final payment of all administrative penalty installments and full and final donation contribution installments no later than 270 days after the Commission enters a final, signed order in the proceeding.23.

Settlement Agreement And Report To The Commission (02/28/2024)
56246 (02/28/2024)