HomeMy WebLinkAboutOrdinance 27077-08-2024Ordinance No. 27077-08-2024
AN ORDINANCE INCREASING ESTIMATED RECEIPTS AND
APPROPRIATIONS IN THE SPECIAL DONATIONS LTD FUND IN THE
AMOUNT OF $109,000.00 FOR THE PURPOSE OF FUNDING THE
NEIGHBORHOOD SERVICES DONATIONS PROJECT (CITY PROJECT NO.
S00150); PROVIDING FOR A SEVERABILITY CLAUSE; MAIUNNG THIS
ORDINANCE CUMULATIVE OF PRIOR ORDINANCES; REPEALING ALL
ORDINANCES IN CONFLICT HEREWITH; AND PROVIDING AN EFFECTIVE
DATE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH,
TEXAS:
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That in addition to those amounts allocated to the various City departments for Fiscal Year 2023-2024 in the
Budget of the City Manager, there shall also be increased estimated receipts and appropriations in the Special
Donations LTD Fund in the amount of $109,000.00 for the purpose of funding the Neighborhood Services
Donations Project (City Project No. S00150).
SECTION 2.
That should any portion, section or part of a section of this ordinance be declared invalid, inoperative or void
for any reason by a court of competent jurisdiction, such decision, opinion or judgment shall in no way impair
the remaining portions, sections, or parts of sections of this ordinance, which said remaining provisions shall
be and remain in full force and effect.
SECTION 3.
That this ordinance shall be cumulative of Ordinance 26453-09-2023 and all other ordinances and
appropriations amending the same except in those instances where the provisions of this ordinance are in
direct conflict with such other ordinances and appropriations, in which instance said conflicting provisions of
said prior ordinances and appropriations are hereby expressly repealed.
SECTION 4.
This ordinance shall take effect upon adoption.
APPROVED AS TO FORM AND LEGALITY:
CITY SECRETARY
Assistant City Attorney
Jannette S. Goodall
City Secretary
ADOPTED AND EFFECTIVE: August 27, 2024
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Control Number: 56246
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Item Number: 7
DOCKET NO.56246
SETTLEMENT AGRE.GIv. EN7' AND §
REPORT TO THE COMMISSION §
REGARDING YOUNG ENERGY, LLC'S §
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 §
ORDER
RECEIVED
70211 MAY 16 PH 1; 15
PUBLIC UTILITY CpYM�i�I 0ut1l5;lDl1
FILING CLERK
OF TEXAS
This Order addresses the agreement between Commission Staff and Young Energy, LLC
regarding Commission Staff's investigation of Young Energy for violations of PURA' § 39.101(h)
relating to customer safeguards and 16 Texas Administrative Code (TAC) §§ 25.483(b)(2)(B) and
0), related to disconnection of service. The agreement also serves as a report to the Commission
under 16 TAC § 22.246(h)(1). Commission Staff recommends that Young Energy pay to the
Commission an administrative penalty of $100,000 and make 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. Young Energy agrees to pay the administrative
penalty recommended by Commission Staff and to make the charitable contribution recommended
by Conunission Staff. The Commission approves the administrative penalty to the extent provided
in this Order.
I. Findings of Fact
The Commission makes the following findings of facts.
Res. Roydent
1. Young Energy is a Texas Iimited liability company registered with the Texas secretary of
state under riling number 800462790.
Public Utility Regulatory Act,'1'cx. Util. Code §§ 1 I.001-66.016.
Docket No. 56246 Order Page 2 of 10
2. Young Energy is registered with the Commission as an Option 1 retail electric provider
(REP) under REP certificate number 10110.
Violations of PURA § 39.101(h)_ and 16 TAC § 25.4830)
3. From November 1, 2020, through September 1, 2022, extreme weather emergencies were
declared for 60 days in counties in which Young Energy serves residential or small
non-residential customers.
4. During the 60 days for which extreme weather emergencies were declared, Young Energy
authorized the disconnection for nonpayment of electric service for 1,819 customers
located in counties affected by extreme weather emergencies. All disconnections were to
be completed during the pendency of the emergencies.
5_ The transmission and distribution utilities (TDU) that received Young Energy's
authorizations to disconnect service for nonpayment did not complete any of the authorized
disconnections.
Violations o 16 TAC § 25 483 b 2 B
6. Prior to authorizing disconnections for non-payment of residential and small
non-residential customers, Young Energy was required to file —in Project No. 297602—an
affidavit from an officer of the company affirming that Young Energy understood and had
trained its personnel on the Commission's rule requirements related to disconnection and
reconnection and had adequately tested all necessary electronic transactions related to
disconnections and reconnections of service.
7. Commission Staff asserts that Young Energy failed to file the required affidavit prior to
authorizing disconnection of service for non-payment.
8. Young Energy filed the required affidavit in Project No. 29760 on October 6, 2023.
Notice
9. On January 23, 2023, Commission Staff provided Young Energy with notice of the results
of its investigation and provided information about Young Energy's right to a hearing and
an opportunity to explain its activities.
2 Compliance Filings Relating to Disconnection of Electric Service Pursuant to PUC Subst.
R. 25.483(b)(2)(C), Project No. 29760 (pending),
Docket No. 56246 Order Page 3 of 10
10. On November 17, 2023, Commission Staff provided Young Energy with notice of the
updated results of its investigation and provided information about Young Energy's right
to a hearing and an opportunity to explain its activities_
Agreement
11. Young Energy cooperated with Commission Staff's investigation.
12. Young Energy neither admits to nor denies the allegations of violations detailed in this
Order.
13. On February 26, 2024, Commission Staff and Young Energy entered into .an agreement
regarding the violations described in this Order. Commission Staff recommended, and
Young Energy agreed to, the following:
a. Young Energy will pay an administrative penalty of $100,000.
b_ Young Energy will make a total donation of $100,000 to the City of Fort Worth's
Community Action Partners.
C. Young Energy has implemented the following protective measures to prevent
future authorizations of disconnections for nonpayment during extreme weather
emergencies, and will continue to implement such measures going forward:
(1) During 2020, Young Energy's customer information system underwent a
major enhancement intended to prevent the release of disconnection
requests during weather moratoriums. The enhancements included
automatic retrieval and interpretation of National Weather Service (NWS)
advisories, text interpretation, set up of weather moratoriums by the TDUs
and counties, and the functions needed to intercept any applicable
disconnect for non-payment orders to be otherwise submitted to the market.
(2) Following the extreme weather events between July 26, 2021 and
August 3, 2021, there was another review and overhaul of the customer
information system, and Young Energy continued to find and close
loopholes in the system to protect consumers and to automatically establish
weather moratoriums, blocking any disconnection requests.
Docket No. 56246 Order Page 4 of 10
d. Young Energy will implement the following protective measures to further prevent
future authorizations of disconnections for nonpayment during extreme weather
emergencies:
(I) Young Energy has elevated the importance of complying with the rules
related to disconnection of service. A company officer will directly oversee
the processes for establishing weather moratoriums in its systems, reporting
on the status of the systems going into a disconnection cycle, and immediate
reconnection if any mistakes are made. Additional manual procedures are
also under the auspices of the company officer.
(2) Young Energy will continue its participation in the Retail Market
Subcommittee Market Coordination Team for Texas SET Version Releases.
Young Energy will continue to advocate for Texas SET 5.0 to be
implemented as soon as possible. Texas SET 5.0 will allow for the
exchange of county information from the TDU to Young Energy and other
REPs during enrollment_ This is expected to vastly improve the accuracy
of county assignments in Young Energy's systems.
(3) Young Energy will also add more functions and additional new reports to
its systems to improve data accuracy and reconnection speed when an
inadvertent disconnection request is sent during a weather moratorium.
Reports will be designed to better assist in backup manual procedures and
data cleanups.
e, Should Young Energy authorize any disconnections for nonpayment during an
extreme weather emergency to be completed during the pendency of the
emergency, Young Energy will take all actions necessary to ensure that the
disconnections are not completed, including submission of precautionary reconnect
orders.
f. Young Energy agrees to maintain compliance with Commission rules governing
extreme weather emergencies.
14. On February 28, 2024, Commission Staff filed a copy of the executed agreement with the
Commission's filing clerk.
Docket No. 56246 Order Page 5 of 10
Seriousness oLAlleed Violations
15. When a REP fails to file a required affidavit attesting to compliance with certain
Commission rules, the REP bypasses one of the Commission's mechanisms for ensuring
compliance with such rules.
16. A REP authorizing disconnection of service to retail customers during an extreme weather
emergency causes a hazard or potential hazard to the health and safety of the public by
putting customers at risk of exposure to extreme temperatures.
Compliance History and Deterrence of Future Violations
17. Commission records from December 2020 indicate that Young Energy authorized
disconnection for nonpayment of electric service for 3,134 customers located in counties
affected by extreme weather emergencies between January 1, 2018 and
December 31, 2019. The investigation was concluded when Commission Staff issued a
warning letter.
18. The agreed administrative penalty of $100,000 is sufficient and necessary to deter future
potential violations of rules governing authorization of disconnections for nonpayment
during extreme weather emergencies.
Evidentiary Record
19. In Order No. 1 filed on February 29, 2024, the administrative law judge admitted into
evidence the settlement agreement and report to the Commission filed by the parties on
February 28, 2024.
im rowl Disposition
20. More than 15 days have passed since completion of all notice requirements.
21. No person filed a protest or motion to intervene.
22. Young Energy and Commission Staff are the only parties to this proceeding.
23. No party requested a hearing, and no hearing is needed.
24. Commission Staff recommended approval of the agreement.
25. This decision is not adverse to any party.
Docket No. 56246 Order Page 6 of 10
II. Conclusions of Law
The Commission makes the following conclusions of law.
I_ The Commission has authority over this matter under PURA §§ 14,051, 14.054, 15.023,
15.024, 39.101(h), and 39.357.
2. Young Energy is a REP as that term is defined under PURA § 17.002(6) and 16 TAC
§ 25.5(114).
3. Under 16 TAC § 25.483(b)(2)(B), prior to authorizing disconnections for non-payment of
residential and small non-residential customers, Young Energy was required to file an
affidavit from an officer of the company —in Project No. 29760 (a project which was
established by the Commission for this purpose) —affirming that it understood and had
trained its personnel on the Commission's rule requirements related to disconnection and
reconnection, and had adequately tested all necessary electronic transactions related to
disconnections and reconnections of service.
4. The facts stipulated to by the parties establish that Young Energy violated 16 TAC
§ 25.483(b)(2)(B) by failing to file the required affidavit before authorizing disconnections
for nonpayment of residential and small nor -residential customers.
5. Under PURA § 39.101(h), a REP may not disconnect service to a residential customer
during an extreme weather emergency.
6. Under 16 TAC § 25.4830), a REP having disconnection authority under
16 TAC § 25.483(b), such as Young Energy, must not authorize a disconnection for
nonpayment of electric service for any customer in a county in which an extreme weather
emergency occurs.
7. Under 16 TAC § 25.483a)(1), an extreme weather emergency is defined 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 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."
Docket No. 56246 Order Page 7 of 10
8. The facts stipulated to by the parties establish that, from November 1, 2020, through
September 1, 2022, Young Energy violated PURA § 39,101(h) and 16 TAC § 25.4830)
when it authorized the disconnection for nonpayment of electric service for 1,819 customers
located in counties under extreme weather emergencies to be completed during the
pendency of the emergencies.
9. Under PURA § 15.023, the Commission has authority to impose administrative penalties
against Young Energy for violations of PURA and Commission rules.
10. Under 16 TAC § 25.8(b)(2)(B), the violation of 16 TAC § 25.483(b)(2)(B) is a class B
violation.
11. Under 16 TAC § 25.8(b)(2)(A), the Commission may impose a penalty of up to $5,000 per '
violation per day for a class B violation.
12. Under 16 TAC § 25.8(b)(3)(B), the violations of PURA § 39.101(h) and 16 TAC § 25.4830)
are cla," A violations.
1I Under 16 TAC § 25.8(b)(3)(A), the Commission may impose a penalty of ❑p to $25,000 per
violation per day for a class A violation.
14. Young Energy was provided proper notice of Commission Staffs investigation into this
matter, the results of the investigation, information about Young Energy's right to a hearing,
and an opportunity to explain its activities, as required by 16 TAC §§ 22.241(a)(2)
and 22.246(f)(2).
15. The filing of the agreement meets the requirements of 16 TAC § 22.246(h)(1).
16. The Commission processed this docket in accordance with the requirements of applicable
statutes and Commission rules_
17. The requirements for informal disposition under 16 TAC § 22.35 have been met in this
proceeding.
11I. Ordering Paragraphs
In accordance with these findings of fact and conclusions of law, the Commission issues
the following orders.
Docket No. 56246 Order Page 8 of 10
1. The Commission approves the agreed administrative penalty to the extent provided in this
Order.
2. Young Energy must comply with the terms of the agreement and this Order,
3. Young Energy must pay an administrative penalty in the amount of $100,000 to the
Commission in eight monthly installments of $12,500 each. Young Energy is required to
remit the monthly installment payments of the administrative penalty beginning on or
before 30 calendar days after the date the Commission signs this Order. Payment of the
administrative penalty may be made by check payable to the Public Utility Commission of
Texas. The check must reference this docket and must be sent to the following address:
Public Utility Commission of Texas
ATTN: Fiscal Services
P.O. Box 13326
Austin, Texas 78711
4. Young Energy must donate $100,000 to the City of Fort Worth's Community Action
Partners in eight monthly installments of $12,500 each. Young Energy is required to remit
the monthly installment donations beginning on or before 30 calendar days after the date
the Commission signs this Order. Payment of the donations must be made by check,
payable to City of Fort Worth's Community Action Partners. The check must reference
this docket and must be sent to the following address:
City of Fort Worth's Community Action Partners
200 Texas Street
Fort Worth, TX 76102-6314
Attention: Assistant Director Sonia Singleton
5. Young Energy must file an affidavit of payment in this docket of the administrative penalty
and charitable contribution no later than five calendar days after remitting final payment.
6. Young Energy must continue its efforts to prevent authorization of disconnection for non-
payment of electric service during extreme weather emergencies_
7. The Commission is not constrained in any matters from requiring additional action or
penalties from matters that are not resolved by this Order.
8. This Order resolves only the violations identified in this Order.
Docket No. 56246 Order page 9 of 10
9. Entry of this Order does not indicate the Commission's endorsement or approval of any
principle or methodology that may underlie the agreement and must not be regarded as
preeedential as to the appropriateness of any principle or methodology underlying the
agreement.
10. The Commission denies all other motions and any other requests for general or specific
relief, if not expressly granted.
Docket No. 56246 Order Page 10 of 10
Signed at Austin, Texas on the day of 2024.
PUBLIC UTILITY COMMISSION OFTEXAS
THOMAS J. GLEESON CHAIRMAN
y cad]nloldcislC,aal\.1601)01i6246 In docx
City of Fort worth, Texas
Mayor and Council Communication
DATE: 08/27/24 M&C FILE NUMBER: M&C 24-0739
LOG NAME: 19DONATIONS LTD3
SUBJECT
(CD 6 and ALL) Authorize Acceptance of Donations to the Neighborhood Services Department from Como Lions Heart in the Amount of
$5,000.00 for Como Community Center Programs; Authorize Acceptance of AARP Texas Donation in the Amount of $4,000.00 for Age Friendly
Initiatives Programs; Authorize Acceptance of $100,000.00 from Young Energy, LLC. for the Utility Assistance Program; and Adopt Appropriation
Ordinance Increasing Estimated Receipts and Appropriations in the Special Donations LTD Fund in the Amount of $109,000.00
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize acceptance of monetary donations in the amount of $5,000.00 from Como Lions Heart for the purpose of supporting the Como
Community Center Summer Day Camp Program;
2. Authorize acceptance of monetary donation from AARP Texas in the amount of $4,000.00 for the purpose of supporting the Age Friendly
Initiatives;
3. Authorize acceptance of monetary donations from Young Energy, LLC. in the amount of $100,000.00 for the purpose of supporting the utility
assistance program; and
4. Adopt the attached appropriation ordinance increasing estimated receipts and appropriations in the Special Donations LTD Fund in the
amount of $109,000.00 for the purpose of funding the Neighborhood Services Donations Project (City Project No. S00150). The increased
appropriation will account for past and future donations received by Neighborhood Services Department.
DISCUSSION:
The purpose of this Mayor and Council Communication (M&C) is to: (1) authorize acceptance of monetary donations and (2) authorize increasing
estimated receipts and appropriations in the Special Donations Life To Date (LTD) Fund in the amount of $109.000.00.
The monetary donations described below were received after M&C 24-0383 (May 14, 2024) authorized the acceptance of previous donations
under the Special Donations LTD Fund.
Monetary donations totaling $9,000.00 were received to support programs at City community centers. Como Lions Heart donated $5,000.00 to
support Summer Day Camp Field Trips fees for Como Community Center campers (0190523). AARP Texas donated $4,000.00 to support Age
Friendly Initiatives at Como Community Center- $3,000.00 for a "prom" held on June 8, 2024 and $1,000.00 forwellness walk scheduled for
October 3, 2024 (0190500).
As part of a settlement agreement, Young Energy, LLC, was ordered by the Public Utility Commission of Texas to donate $100,000.00 to the City's
Community Action Partners in eight monthly installments of $12,500.00 (Docket No. 56246). The first payment was received in June 2024 and the
last payment is due in January 2025 (0190444). The Neighborhood Services Department Community Action Partners (CAP) will use these funds
for past due utility assistance for low income households with the following guidelines:
1. To qualify for utility assistance, the applicant must be individually qualified under Comprehensive Energy Assistance Program (CEAP) grant
regulations and program guidelines except for income qualification
2. Income qualification for eligibility will be that of 15% more than maximum Federal Poverty Income Guidelines prescribed by CEAP grant
3. Applicant must be either a citizen of the United States (U.S.) or a permanent resident of the U.S.
4. Maximum disbursement will not exceed $2,400.00 per beneficiary per calendar year
5. If applicant is eligible for utility assistance under CEAP, they should not be able to use these funds for further assistance
6. Neighborhood Services Department Director has to approve all disbursements
Partial funding is available in the Special Donation LTD Fund for the purpose of funding the Neighborhood Services Donation project. Remaining
payments will come from Young Energy, LLC. over the next six months for total of $75,000.00.
The Como Community Center is located in Council District 6. The funds for utility assistance donations will be used citywide.
A Form 1295 is not required because: This M&C does not request approval of a contract with a business entity.
FISCAL INFORMATION ! CERTIFICATION:
The Director of Finance certifies that funds are currently available in the Neighborhood Services Donation project within the Special Donations
LTD Fund and upon approval of the above recommendations and adoption of the attached appropriation ordinance, funds will deposited into
Special Donations LTD Fund for the Neighborhood Services Donation project. The Neighborhood Services Department (and Financial
Management Services) is responsible for the collection and deposit of funds due to the City. Prior to any expenditure being incurred, the
Neighborhood Services Department has the responsibility of verifying the availability of funds.
Submitted for City Manager's Office bv: Fernando Costa 6122
Originating_ Business Unit Head: Kacey Bess 8187
Additional Information Contact: Kacey Bess 8187
Rhonda Hinz 2573