News Stories
Sponsored by Earth Etch. Regulatory insight and compliance solutions for today’s energy markets.
Texas Residential Leasing Agent To Pay $200,000 To Resolve Allegations It Essentially Acted As Uncertificated Retail Electric Provider In Choice Area
Under the settlement, “Commission Staff recommends, and FirstKey agrees to pay, an administrative penalty of $200,000 for the violations discussed in this settlement agreement.”
The settlement reached between Staff and FirstKey resolve alleged violations of PURA §§ 17.004(a), relating to customer protection standards; 39.102, relating to customer choice; 39.107, relating to metering and billing services; and 39.352(a), relating to certification of retail electric providers; 16 Texas Administrative Code (TAC) §§ 25.107(a), relating to certification of retail electric providers; 25.474, relating to selection of a retail electric provider; and 25.475, relating to general retail electric provider requirements and information disclosures to residential and small commercial customers.
Excerpts from the Settlement:
“FirstKey is the agent for the owner and manages approximately 3,169 individually metered rental homes in Texas.” Of those, FirstKey controlled the electric accounts of approximately 1,692 customers.
“FirstKey provided turnkey utility services to new tenants, with electric service provided by a retail electric provider (“REP”) with whom FirstKey contracted. FirstKey negotiated a favorable electric rate with the REP for electric service to all of the rental homes in Texas. However, these rates were provided under a continuous service agreement, which must be terminated when a tenant takes up residence.”
“Under the leases with the affected tenants, FirstKey paid the electricity usage charges up front for all tenants, and then each tenant was billed for electricity usage through a third-party billing service.”
“After being notified of the issue, FirstKey immediately notified tenants of the necessity to establish their own electric service accounts, “and FirstKey discontinued the practice of taking title to electricity and reselling to its tenants, effectively acting as an uncertificated retail electric provider (REP) and interfering with its customers legally mandated right to choose their own REP.”
Settlement Agreement And Report To The Commission (01/23/2024)
56111 (01/08/2024)
