State Regulators Fine PSE

Just days after the November 2012 general election, the WUTC, the regulatory agency responsible for Puget Sound Energy, fined them $250,000 for their handling of low income accounts. In the election, PSE, after spending an ungodly amount of money, was able to defeat County Proposition 1, which would have allowed for competition in their Thurston County Monopoly Market. The Prop. was defeated by about 40 to 60 percent. Over one hundred thousand votes were cast. PSE spent almost $600,000 on the PAC that they formed, plus untold additional monies on various other campaigns they run to curry favor with their rate-payers. Following is the WUTC story as posted on their website about the November 2012 settlement:

State regulators fine Puget Sound Energy $250,000

Published
11/9/2012
Details

Media contact: (360) 664-1116 or media@utc.wa.gov
Docket Number: U-110808

State regulators fine Puget Sound Energy $250,000
Company failed to comply with a state order and violated consumer protection rules

OLYMPIA, Wash. – State regulators have fined Puget Sound Energy (PSE) $250,000 for violating a 2010 order that required the utility to review and correct specific customer accounts.

The Washington Utilities and Transportation Commission (UTC) has approved a multi-party settlement of a complaint that alleged 515 violations of the 2010 order. The parties include: commission staff, PSE, the Public Counsel Section of the Attorney General’s Office, and The Energy Project, a nonprofit group that represents low-income people.

The UTC originally penalized the company $104,300 in October 2010 for improperly handling accounts of customers, including many low-income customers, disconnected for nonpayment. In addition to that penalty, the company was ordered to make corrections to 26 specific customer accounts identified by UTC staff.

In the 2010 order, the UTC also penalized the company for improperly applying energy assistance pledge funds made to low-income customers’ accounts. Energy assistance pledges are intended to help consumers keep the lights and heat on during the winter months. Commission staff cited PSE for improperly applying those funds to a prior balance, which led to additional threats of disconnection for customers.

PSE has now provided refunds and credits to the mishandled customer accounts, and changed its billing practices to ensure that customer payments are applied correctly. The company also agreed to make a $75,000 contribution to its low-income assistance program. The utility is not allowed to pass the penalty costs to customers through rates.

Bellevue-based PSE serves more than 1 million electric customers and about 785,000 natural gas customers, primarily in the Puget Sound region of Western Washington.

The UTC is the three-member state agency in charge of regulating the private, investor-owned electric and natural gas utilities in Washington. It is the commission’s responsibility to ensure regulated companies provide safe and reliable service to customers at reasonable rates, while allowing them the opportunity to earn a fair profit.
###

Editor’s note: A copy of the penalty complaint may be found at www.utc.wa.gov/110808.

Editor’s Note:

In the story, it was mentioned that WUTC is responsible for ensuring that private monopoly utilities provide safe and reliable service while allowing them to earn a fair profit.

Does it seem fair to have been paying the highest rates, yet receive service with one of the worst reliability ratings?

Has PSE been taking too much profit? Just who exactly is WUTC protecting? What seems fair to you?

Comments are closed.