The Public Utilities Regulatory Authority has fined Avangrid $4 million for failing to comply with an emergency order requiring it to notify customers with outstanding balances about a COVID-19 program before filing to garnish their wages.
Avangrid, which owns Connecticut Natural Gas, United Illuminating and Southern Connecticut Gas, was ordered to pay a $4.5 million civil fine for the violations in a notice dated Oct. 31.
Under the COVID-19 Payment Program, PURA required utilities to communicate with customers about the COVID-19 Payment Program. Specifically, the authority required utilities to “proactively and directly contact any residential, commercial or industrial customer after the customer’s first missed payment” with information about the program.
The payment program was part of an emergency order establishing a moratorium on utility shut-offs during the pandemic.
Since the program notification requirement began on April 29, 2020, Avangrid filed at least 204 applications for wage garnishments against customers, PURA’s investigation found.
Avangrid instructed its collections firm to provide COVID-19 Payment Program information to customers, except those with a judgment against them, according to PURA.
PURA found that each application for wage garnership was a violation of the emergency order.
PURA also alleged that Avangrid referred inactive accounts to third-party collection agencies without providing adequate notice that their information would be submitted to credit agencies.
During proceedings, Avangrid argued that the COVID-19 Payment Program was “less favorable” to customers than a court judgment. PURA said that assertion was untrue.
“Garnishing wages is one of the most severe forms of debt collection; therefore, violations of Authority orders that may have resulted in unwarranted or avoidable wage garnishments are particularly egregious and necessitate substantial sanctions,” the violation states.
Of the $4.5 million, UI will pay $2.3 million, SCG will pay $1 million and CNG will pay $1.1 million to Operation Fuel, which provides financial assistance to customers experiencing difficulties.
Avangrid has 20 days from receipt of the notice of violation to request a hearing to appeal the penalties.
PURA previously cited Avangrid after its customer service representatives provided inconsistent information to customers about the COVID-19 Payment Program.
A spokesman for Avangrid, Gage Frank, said the companies are aware of the draft decision issued by PURA and are reviewing it.
“The companies maintain that they have respected and complied with the moratorium, and that the collection activity involving the accounts that are the subject of the investigation pre-dated the moratorium,” he said.
