Texas Regulator Imposes $126,500 in Fines and Revokes Electric Provider Certification Over Rule Breaches

AUSTIN, Texas — The Public Utility Commission of Texas (PUCT) has issued penalties totalling $126,500 and revoked the licence of a retail electric provider following several breaches of state electricity regulations. The enforcement actions, confirmed at the Commission’s latest open meeting, underscore the regulator’s ongoing oversight of Texas’s electricity, water, and telecommunications sectors.

The decisions were approved through four separate settlement agreements, covering violations that ranged from non-compliance with grid operation standards to failures in maintaining service reliability and meeting financial obligations.

Multiple Enforcement Actions

In Docket No. 58653, the Commission finalised a settlement with a wind generation company after finding it had failed to operate generation resources in line with voltage instructions between 1 February 2023 and 31 May 2023. The company agreed to pay an administrative penalty of $62,500 and implement corrective actions designed to prevent future breaches.

A further two dockets addressed service quality and reliability issues involving electric utilities.

Under Docket No. 58695, a utility was found to have violated rules governing service performance standards during 2023. The violations fall under PURA § 38.005 and 16 TAC § 25.52, which outline obligations to maintain adequate reliability of supply. The company accepted a $24,000 penalty and committed to improving the performance and resilience of its network.

Similarly, in Docket No. 58746, another electric utility was penalised $40,000 for comparable rule violations. As part of its settlement, the firm also agreed to undertake measures aimed at enhancing the reliability of its infrastructure and operations.

Certification Revoked for Retail Electric Provider

The most serious action came under Docket No. 58756, in which the Commission revoked the certification of a retail electric provider (REP) for failing to meet financial requirements set for such companies under 16 TAC § 25.107(k).

According to the settlement, $500,000 will be distributed through a letter of credit to the transmission and distribution utilities that the now-defunct REP had failed to pay. The revocation effectively removes the company from the Texas retail electricity market.

This step highlights the PUCT’s willingness to enforce compliance among market participants who manage customer accounts and financial transactions within the state’s deregulated electricity system.

Funds Directed to the State

All administrative penalties collected by the Commission are paid directly to the PUCT and subsequently deposited into Texas’s general fund. In line with regulatory procedure, payments are typically required within 30 days of the final order being signed.

The Commission said such penalties are intended not only to enforce accountability but also to promote higher operational standards among utilities and energy providers.

Oversight Role and Next Steps

The Public Utility Commission of Texas serves as the state’s primary economic regulator for electricity, water, and telecommunications. Its responsibilities include monitoring the performance of market participants, ensuring fair practices, and maintaining system reliability across the power grid.

The Commission holds open meetings regularly to discuss enforcement actions, policy matters, and administrative issues affecting the state’s infrastructure sectors.

“The Commission approved settlement agreements in four separate dockets,” the statement noted, outlining the penalties and settlements agreed upon during the latest session.

The regulator also confirmed that the full meeting agenda and a recording of this week’s open meeting are available on the PUCT website, providing transparency for members of the public and market observers. The next PUCT open meeting is scheduled for Thursday, 20 November 2025.

Broader Context

Texas operates one of the most competitive electricity markets in the United States, with dozens of retail providers supplying consumers under a deregulated model. The PUCT’s latest enforcement decisions come amid ongoing efforts to strengthen operational reliability and financial accountability following several years of market volatility.

By issuing these penalties and revoking one provider’s certification, the Commission aims to reinforce compliance standards and protect both consumers and grid stability.

The actions underline the PUCT’s continued emphasis on maintaining the integrity of Texas’s energy market through strict enforcement of its regulations and consistent monitoring of market participants.