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Re:  Settlement Agreement And Report To The Commission Regarding Pulse Power’s Alleged Violations Of Pura §§ 17.004 And 39.101 As Well As 16 Tac § 25.475(E), Requiring Affirmative Consent For The Re-Enrollment Of Existing Customers.

Per the proposed Staff and Pulse Power settlement would pay $32, to resolve alleged violations of PURA §§ 17.004(a)(1) and 39.101(b)(6) as well as 16 TAC § 25.475(e), requiring affirmative consent for the re-enrollment of existing customers.

Excerpts from the Settlement:

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Alleged Violations of 16 TAC § 25.475(e)(3) 

10. Under 16 TAC § 25.475(e)(3), a customer that is currently receiving service from a REP may be re-enrolled with the REP for service with the same product under which the customer is currently receiving service, or a different product, by conducting an enrollment pursuant to 16 TAC § 25.474 or by obtaining the customer’s affirmative consent for the reenrollment in a recording, electronic document, or written letter of authorization.
11. Between January 1,2022 and June 9,2023, when an existing customer called Pulse Power to inquire about the availability of Pulse Power’ s solar plan options, Pulse Power informed the customer that it would automatically switch the customer to Pulse Power’ s ” solar buyback plan” within 14 days unless the customer took action to remain on the customer’ s existing plan. Ifthe customer did not affirmatively opt out of the switch in plans within 14 days, Pulse Power re-enrolled the customer for service under the solar buyback plan, despite never obtaining the customer’ s consent in a recording, electronic document, or written letter of authorization. 
12. Under the solar buyback plan, Pulse Power agrees to purchase (via credit to the customer’ s bill), and the customer agrees to sell, any excess energy delivered by the customer’ s solar energy system to the grid monthly.
13. In total, Pulse Power switched 198 customers from their selected plans into a solar buyback plan under the process described above.
14. Between January 1, 2022, and June 9, 2023, Commission Staff alleges that Pulse Power violated 16 TAC § 25.475€(3) 198 times by re-enrolling its customers to receive service under a new plan without first obtaining their affirmative consent for the re-enrollment.

Alleged Violations of PURA ## 17.004(a)(1) and 39.101«))(6) 

15. Under PURA §§ 17.004(a)(1) and 39.101(b)(6), all buyers of retail electric service are entitled to protection from being billed for services that were not authorized or provided. 16. Between January 1, 2022, and June 9, 2023, Commission Staff alleges that Pulse Power violated PURA §§ 17.004(a)(1) and 39.101(b)(6) 198 times by billing customers for services that the customer did not authorize. {***}

Corrective Action

17. Pulse Power asserts that, of the 198 customers it switched to the solar buyback plan without obtaining affirmative consent, it ultimately obtained consent from 67 customers after the switch was performed. Pulse Power also switched two of the customers back to their original plan without any financial impact to the customers. 
18. Pulse Power has ceased the behavior described in this agreement and implemented the following corrective measures to prevent violations of 16 TAC §25.475(e)(3) from occurring, and will maintain such measures going forward: 

1. Removed language regarding the automatic switching of plans from its Terms of Service document.
2. Implemented a new process for reviewing and approving customer plan changes. All plan changes, including solar buyback plans, require a customer’ s verbal consent on a recorded phone line to proceed with the switch. 
3. Re-trained all customer service agents to confirm that (i) a net meter is in place at the customer’s location and (ii) the customer’s solar system has received permission to operate from the corresponding distribution service provider before authorizing a customer’ s change to a solar plan. 
4. Attempted to contact the remaining affected customers still under the solar buyback plan to obtain affirmative.  {***}

Settlement Agreement And Report To The Commission    (1/23/2024)
56118   (01/10/2024)