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In a Stipulation Joint Recommendation  Realgy Energy Services (Realgy or Company) has agreed to wind-down its retail electric and gas businesses in Ohio and to exit the state’s retail energy markets under a settlement with Staff of the Public Utilities Commission of Ohio (PUCO). 

“This Joint Stipulation and Recommendation (“Stipulation”) sets forth the agreement of Realgy Energy Services (“Realgy” or “Company”) and the Staff of the Public Utilities Commission of Ohio (“Staff”), each of whom is a “Signatory Party” and together constitute the “Signatory Parties.” The Signatory Parties recommend that the Public Utilities Commission of Ohio (“Commission” or “PUCO”) approve and adopt this Stipulation, which resolves all the issues identified by the Staff in its Notice of Probable Noncompliance dated January 8, 2024 (“PNC Letter”), attached as Exhibit A.”

The settlement would resolve a notice of probable noncompliance (PNC) issued by Staff to Realgy that had alleged several “misleading and deceptive” practices including among other things, that two members of Staff, in addition to other consumers filing complaints, received sales calls from Realgy that included a “prerecorded” message that began with a recording stating that the call was from the utility, that customers were being overcharged, and that customers could save 35%.

Among other things, Staff further alleged Realgy agents allegedly stated that they were from the utility or the “government”.

Staff also surmised that Realgy agents were alleged to promise savings that Staff alleged were not or could not have been realized by the consumer. Staff alleged an example in which Realgy allegedly described its price as “competitive” against both the utility and other suppliers, and allegedly informed the customer that, had the customer been with Realgy, their rate would have been $0.156/kWh in the prior month. Staff alleged that Toledo Edison’s SSO rate at the time was $0.057619/kWh.

According to Staff Realgy allegedly spoofed its phone number to appear as the local utility or someone with a local telephone number.

In addition, “Staff believes Realgy is manipulating sales calls and TPVs,” “In many of the sales calls related to consumer complaints, the sales agent appeared to have followed a script; however, the call did not sound like a natural conversation. For instance, the interaction includes the sales representative asking the consumer questions, and the consumers only provide one-word responses such as ‘yes’ or some other form of agreement. 

Excerpts from the Joint Recommendation of Signatory Parties:

{***} Parties hereby agree, as follows: 

1. Realgy will immediately suspend all marketing and enrollment activity 
2. For all customers currently enrolled telephonically from October 2022 through present, 

Realgy must take the following actions:

1. Pay double the rerates for these customers back to the utilities’ corresponding price-to-compare unless the total billed rate, including all fees, was less than what the customer would have paid on the price-to-compare; and 
2. Provide Staff a list of all customers Realgy determines should not be rerated and the information Realgy relied upon to make this determination. 
3. Provide Staff with a copy of the communication regarding the rerate that is being sent to customers. The letter shall, at a minimum, advise customers that they are receiving this rerate because of a settlement with the PUCO in Case No. 24-918-GE-UNC. 
4. Rerate all eligible customers within 30 days of the signature of the Stipulation. 
5. Provide Staff with the total dollar amount rerated to customers.

1. Provide the list and information described above in Joint Recommendation 

Prior to the expiration of Realgy’s current certifications. Realgy will pay double the rerates for all Realgy customers back to the utilities’ price-to-compare who filed a complaint with the Commission, Realgy, or any other entity (e.g., Better Business Bureau and local utility) disputing their enrollment from October 2022 to present. 

1. Realgy agrees not to file applications to renew its CRNGS certificate in Case No. 16-1117-GA-CRS and its CRES certificate in Case No. 18-1327- EL-CRS. 
2. Realgy will have until December 16, 2024, 3 to winddown its CRNGS business, and until December 17, 2024, 4 to winddown its CRES business (“Winddown Period”).

1. Realgy may not acquire any new customers during this Winddown Period.
2. During the Winddown Period, variable rates charged by Realgy cannot be greater than the Standard Service Offer (“SSO”) rates or Standard Choice Offer (“SCO”) rates. 
3. Realgy will notify Staff when its CRES and CRNGS winddown in Ohio is complete. The notification shall include a summary of the winddown process.

1. Realgy and/or any of its owners or principal officers will not apply to operate as a Competitive Retail Natural Gas or Electric Service provider in the state of Ohio. This stay-out period is not to commence until the winddown of Realgy’s business and the expiration of Realgy’s CRNGS and CRES certificates. Realgy and its officers agree to never refile in the state of Ohio. 
2. If Realgy requires additional time to winddown its business, Realgy may file a motion to extend its CRES and CRNGS certificates with the Commission for the sole purpose of winding down its business in Ohio. If Realgy files a motion requesting an extension of thirty days or less, Staff will not oppose such motion. 
3. Realgy agrees that a civil forfeiture in the amount of $355,000 shall be assessed against the Company. In accordance with R.C. 4905.54, payment should be made within 45 days of the Commission’s approval of this Stipulation by certified check or money order payable to “Treasurer, State of Ohio”.  {***}

Stipulation Joint Recommendation    (09/25/2024)
24-918-GE-UNC  (09/24/2024)
In the Matter of Realgy LLC dba Realgy Energy Services