Contact Center Industry News

TMCNet:  TXU Rate Overcharge: Watts Guerra Craft Potential Class Action Lawsuit

[January 22, 2013]

TXU Rate Overcharge: Watts Guerra Craft Potential Class Action Lawsuit

DALLAS --(Business Wire)--

Watts Guerra Craft believes that TXU and/or its affiliates may have knowingly overcharged certain residential electricity customers at commercial rates. TXU's rate-overcharging practices may have affected thousands of unsuspecting Texas residential electricity consumers.

TXU was sued in a class action lawsuit brought in Travis County by owners or management companies of multi-family or housing dwellings/complexes located in TXU service areas, who were charged under a residential or "Business Classic" rate and were assessed sales taxes on electricity provided by TXU for any billing period after July 1, 2002. Thomas Crowson v. TXU Energy Retail Company LLC f/k/a TXU Energy Retail Company, LP, No. D-1-GN-07-003901, in the 126th District Court, Travis County, Texas. TXU later entered into a Stipulation and Agreement of Compromise and Settlement that settled that action.

Currently, Watts Guerra Craft believes that TXU may be subject to an additional lawsuit with regard to rate overcharges, as a different group of potential plaintiffs, residential customers, may have been overcharged in a different area of Texas.

Residential consumers affected by the business decisions of TXU never took any action to affirmatively authorize TXU to bill them at the non-residential rates. Complaint of Margaret Root against TXU Energy Retail Company LLC, CP2009090569 (September 30, 2009) ("we never at any time signed a consent for change to 'Commercial.'") Instead, TXU imposed the non-residential rates, taxes, service charges, and changes in rate plans. Complaint of Karen Snell against TXU Energy Retail Company LLC, CP2009051812 (June 17, 2009)( "The fact that my account was changed to a 'Business Classic Rate' in 2007, (now known as Partner Advantage or Business Advantage)… was unauthorizedand incorrect.") Even in those instances in which residential customers took affirmative action to change rate plans to avoid the commercial charges, TXU failed to credit the accounts of those customers for the prior unauthorized overcharges. Complaint of Shelia Oliver against TXU Energy Retail Company LLC, CP2008120815 (December 31, 2008) ("Since the day I moved to this address, they have had my account listed as a commercial account. After many telephone calls to fix this problem, L. W. Davis from the Sweetwater facility finally fixed this error. He also informed me, they have overcharged me for my electricity. He also said I was due a refund. I have written them 2 certified letter but to no avail. They have not even responded . . . .") As a result, even though the rate plan has been corrected, those customers continue to be overcharged by TXU. Complaint of Kevin and Barbara Schermerhorn against TXU Energy Retail Company LLC, CP2009061464 (July 14, 2009)("Even though a TXU agent confirmed that . . . their system had been corrected and even though we picked a residential plan, we are continuing to be billed as a commercial/business.")

All TXU residential customers should check their bills to see if they were charged on a commercial rate plan, or charged a delivery charge.

Numerous complaints have been filed with the Public Utility Commission of Texas (PUC) regarding the TXU rate overcharging in Dallas County and beyond. These public records indicate that TXU rate overcharges occurred in violation of the Substantive Rules of the Commission.

TXU's responses to those complaints show that accounts established as new construction (temporary pole) or under multiple names (husband and wife) were transitioned as non-residential. In 2007, TXU made a business decision to change the rate plan for these customers to the "Business Classic" rate. Complaint of Jude Aaron against TXU Energy Retail Company LLC, CP2009060490, Decision (July 2, 2009). The new plan went into effect after the March 2007 bill.

If you or someone you know has been charged on a commercial rate plan for your TXU home electrical service, including the "General Service" Plan, "Business Classic Rate" Plan, "Partner Advantage Rate" Plan, or "Business Advantage Rate" Plan, you can become a part of a potential TXU class action lawsuit to protect your legal rights.

Watts Guerra Craft LLP has handled hundreds of thousands of class action claims across the country, and has won some of the most significant legal victories in American history. For more information about Watts Guerra Craft and TXU, please visit, find us on Facebook, or follow us on Twitter.

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