Update: Vistra-Owned Texas REP Allegedly Moving Fixed Rate Customers Acquired From Windrose To Higher Variable Rate -- EnergyChoiceMatters.com

Update: Vistra-Owned Texas REP Allegedly Moving Fixed Rate Customers Acquired From Windrose To Higher Variable Rate

Vistra Says Action Permissible Under PUC Rule Addressing Acquisitions

March 16, 2022

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Several customers have alleged on social media that Value Based Brands LLC, a unit of Vistra doing business as 4Change Energy, is moving such customers to a higher, variable rate as a result of acquiring such customers from Windrose Energy

EnergyChoiceMatters.com first reported that 4Change was acquiring a residential book of customers from Windrose and noted that, in an FAQ, 4Change did not state that the customers' contracts would be honored, with 4Change's FAQ instead stating that, "4Change Energy will initially transition Windrose Energy customers to a flexible, month-to-month plan. Shortly after the transition 4Change will be reaching out with special fixed-term renewal offers!"

In the FAQ, 4Change also stated, "Some Windrose customers might notice a higher energy charge, but it will be a very competitive rate in today’s market pricing."

However, it initially was not clear if any of the Windrose customers were being served on term fixed rate contracts (or instead just more favorable non-fixed products)

Several customers have now alleged on social media that they have a current, non-expiring term fixed rate with Windrose that 4Change is not honoring. Instead, an alleged communication to one transitioning customer links to a 4Change EFL for a variable rate with an average all-in rate, at 1,000 kWh usage, of 9.9 cents per kWh (with an energy charge of 7.7¢). An existing Windrose EFL alleged to be from a customer impacted by the alleged change shows an average all-in fixed rate of 8.9 cents per kWh at 1,000 kWh (with an energy charge of 5.05¢) [both EFLs are for the Oncor service area]. The Windrose EFL is dated March 17, 2020 and is for a 36 month contract

A media representative for Vistra provided the following statement concerning the matter:

"The Public Utility Commission of Texas’ Rule 25.493(c) specifically addresses the acquisition of customers from another REP (as opposed to customers we enrolled), allowing for material changes to terms of service. Unfortunately, Windrose was left in financial distress by Winter Storm Uri and both companies worked to minimize customer impact. To advance this goal, Vistra provided advance notice to customers of the transition, a product with a competitive market rate, and the ability for these customers to select another product with us or to leave at any time without penalty which we believe was better for the customer than a distressed exit, including a POLR drop."
--- Statement from Vistra

Website RetailEnergyX.com today published an opinion piece examining the question of the use of Subst. R. 25.493 to change a fixed rate to a variable rate, click here for the opinion piece

With respect to Windrose, Windrose in a communication to customers blamed lingering impacts from winter storm Uri for the "transition" of customers, stating as follows:

"As you most likely know, the Winter Storm of February 2021 which was named 'Winter Storm Uri' caused massive turmoil in the Electric Reliability Council of Texas (ERCOT) electrical grid in regards to the electric customers, generators and the Retail Electric Providers (REPs)."
"The storm was very intense and caused generation supply to fail and be forced offline, while demand was extremely high, so much so that millions of customers (including many Windrose customers) were left without power as available supply could not meet demand. This situation caused the prices of any available generation to go to the maximum wholesale price of $9000.00 per Megawatt Hour (MWh) or $9.00 per Kilowatt Hour (kWh) for many days while the extreme cold weather continued."
"This week of unfortunate turmoil bankrupted a number of Co-Ops, cities and REPs, and also put a huge burden on customers of some other REPs that were not on a fixed rate. Fortunately for our customers, we did not and have never offered any plans that were not fixed other than a monthly variable rate, and so no Windrose customers saw extreme bills during this period."
"However, this event did put a huge financial strain on Windrose Energy and caused us to try everything in our power to reconcile and keep Windrose operating."
"Unfortunately, we have not been able to sustain the costs of this event and will be transferring our customers to another REP. We regret having to take this step, but we have no choice in the matter."

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