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Arkansas attorney general asks PSC to probe Summit Utilities’ billing and gas purchases

March 16, 2023 | Tim Griffin Attorney General of Arkansas, Arkansas Freedom of Information Act (FOIA), Arkansas


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Arkansas attorney general asks PSC to probe Summit Utilities’ billing and gas purchases
Little Rock — Attorney General Tim Griffin announced at a press conference that his office will file a motion asking the Arkansas Public Service Commission to investigate Summit Utilities over widespread billing problems and the company’s gas‑purchasing practices.

Griffin told reporters his office opened an inquiry in January after receiving "about 28,100 complaints," saying the complaints and examples gathered by staff showed multiple systemic problems. "We have since then, had about 28100 complaints," he said, and added his office had spoken directly with Summit leadership and its CEO.

Griffin laid out three recurring types of billing problems his team identified. First, some customers’ payments recorded on the legacy CenterPoint system did not appear after bills were migrated to Summit’s new billing platform; Summit later reported roughly 510 customers were affected, Griffin said. Second, estimated bills sent during and after a December cold snap produced large discrepancies between estimated and actual usage; Griffin said an estimated 167,000 Arkansans were affected "to some degree or another." Third, timing issues occurred when autopay credits had not posted before a new bill generated, producing what customers perceived as two months’ charges on a single statement.

Griffin emphasized the difference between the base delivery rate — "the base rate is set by the Public Service Commission" — and the market price of gas, which suppliers pass through to customers. He said other utilities operating in Arkansas, including Black Hills Energy and Oklahoma Gas (referred to in remarks as Arkansas Oklahoma Gas), have far fewer complaints, and that the disparity warrants examination of Summit’s purchasing practices.

At the press conference Griffin said he will ask the PSC to treat purchasing practices as part of an existing docket related to Winter Storm Yuri (a docket dating to February 2021) and to open a new docket to examine alleged billing‑rule violations. He told reporters his motion asks the PSC to consider potential violations of "section 5 of the Public Service Commission's general service rules as it relates to billing practices." "Today, I will be filing a motion with the Public Service Commission," Griffin said, and staff distributed copies of the motion at the conference.

Griffin also relayed a company response: he said Summit CEO Kurt Adams texted that the company had budgeted to hire 75 additional customer‑service representatives (30 already onboard) and planned roughly $10,000,000 in additional investment in customer‑facing software. According to Griffin, Summit reported customer‑service wait times had fallen to about 91 seconds from substantially longer waits earlier in the complaint period.

Griffin did not set a timeline for PSC action. He said his office will continue to represent ratepayers in related dockets and that the PSC has statutory authority to order remedies including rebates or credits if it finds purchasing or billing violations. "I'm not saying that will happen here. I'm gonna leave that to the PSC," he said.

Griffin urged customers who need help with bills to use Summit's assistance program and to contact his office for help filing complaints. He closed the briefing after distributing copies of the motion to the press; the PSC will determine whether and how to open or expand investigations.

Provenance: The office’s estimates of complaints and the examples of billing types are drawn from the press conference remarks and exhibits distributed at the event; the motion filing was announced and distributed at the event.

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