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Multi-Family Property Owner Enters $200,000 Settlement With Texas PUC Staff Over Alleged Sale Of Retail Electricity Without REP Certificate
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Rockstar Capital Management, LLC would pay $200,000 under a settlement with Staff of the Public Utility Commission of Texas
to 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; and 25.475, relating to general retail electric provider requirements and information disclosures to residential and small commercial customers.
According to the settlement, "Rockstar owns and operates 19 properties with a total of 2,707 multi-family rental units for which Rockstar took title to electricity and then resold that electricity to its tenants."
The settlement states, "Under PURA §§ 17.004(a)(2), 39.102(a) and 39.107(c), Rockstar tenants have the right to choose their own REP."
The settlement states, "Prior to July 11, 2023, Rockstar enrolled its individual multi-family rental units to receive service from a REP of Rockstar’s choosing under a “continuous service agreement,” in which Rockstar was named the customer of record for each unit and charged tenants for their electric service under a monthly flat rate utility fee due with the payment of rent."
The settlement states, "Rockstar’s [prior] Lease Addendum for Flat Rate Utility Billing, which tenants were required to sign, stated, “You agree to pay a monthly fee of $199 + $25 Valet Trash fee for the usage of your utilities for your apartment rental unit.” While the affected properties were enrolled in the flat rate utility fee program, tenants were unable to switch providers to a REP of their choice."
Documents included with the settlement agreement state, "At the time of Rockstar’s violations, it took title to electric energy and subsequently sold that electric energy to its tenants, who were retail customers. Rockstar does not hold a REP certificate."
Among other things, Staff had alleged Rockstar violated PURA § 39.352 and 16 TAC § 25.107 because it failed to obtain the required REP certificate.
The settlement states, "Rockstar agrees to discontinue 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."
The settlement states, "As of July 11, 2023, Rockstar has discontinued its flat rate utility fee program and is no longer the retail electric customer of record for any occupied rental property. All Rockstar tenants now receive electric service in their own name from a REP of their choice."
The settlement states, "This agreement represents a compromise of claims and allegations, and the execution of this agreement does not admit the truth or accuracy of any such disputed claims."
Docket 56198
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February 15, 2024
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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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