By Shelley Kofler, KERA News Director
http://stream.publicbroadcasting.net/production/mp3/kera/local-kera-610398.mp3
Dallas, TX – Dallas-based TXU has agreed to pay the second largest fine ever levied by the Texas Public Utility Commission.
According to the Public Utility Commission, TXU violated regulations by automatically renewing the contracts of small commercial retailers more than four thousand times. That's why the Commission is fining the company $5 million.
The agency says electricity providers can legally extend contracts for up to 31 days, but TXU renewed the contracts for a full year when companies didn't respond to notices.
TXU's Sophia Stoller says the utility will pay the fine to avoid a lengthy appeal, but she insists the renewals were meant to help customers.
TXU's Sophia Stoller: We wanted to provide them with a hassle free opportunity to sign up with us again and not worry about it. Also we gave the customers a heads up."
The agreement allows the affected customers to drop their TXU contracts without penalty.
The Utility Commission says a $9 million fine against Enron in 2002 is the only one larger than this one. Both pale in comparison, however, to the $210 million penalty still pending against TXU for allegedly manipulating the market and driving up the price of electricity two years ago. TXU is appealing that fine.