Consumer Strategist
| Bad Business Stories |
Cap Rock Energy to pay over $1.5 Million |
PUC orders $1.2 million of refunds plus $339,228 penaltyThursday, Feburary 23, 2006 -- Cap Rock Energy Corporation must refund more than $1,203,290 plus interest to its electric customers and pay a penalty of at least $339,228 as ordered Thursday by the Public Utility Commission (PUC). The Commission determined that Cap Rock Energy violated state law and PUC rules by collecting unauthorized residential late payment penalties and regulatory surcharges. From September 2003 through June 2004, Cap Rock charged a five percent late fee on 48,662 delinquent residential bills totaling $317,949. Also, between September 2003 and February 2004, Cap Rock collected $885,341 by imposing a rate designated as a “regulatory surcharge” on bills. The company did not file in its tariff a specific monthly rate or a formula for calculation of the monthly rate and the PUC did not authorize the surcharge. The order requires Cap Rock Energy to calculate the refunds plus interest due individual customers within a month. Refunds should begin in approximately two months. Any refunds due customers who cannot be located will be paid to the state’s general revenue fund. Cap Rock Energy is based in Midland and provides service to 28 Texas counties.
|