Court Approves Sale Of Portion Of Volunteer Energy Customers To NRG, With Condition -- EnergyChoiceMatters.com

Court Approves Sale Of Portion Of Volunteer Energy Customers To NRG, With Condition

April 8, 2022

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

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A federal bankruptcy court approved the sale of certain non-muni aggregation contracts of Volunteer Energy Services to NRG Retail LLC

Specifically, the court approved the proposed sale of certain of Volunteer's non-aggregation choice natural gas contracts in the States of Ohio and Michigan, as was first reported in our prior story here, except that the court imposed a condition on any sale of customers in the service area of Vectren Energy Delivery of Ohio d/b/a Centerpoint Energy Ohio (CEOH)

Under the court's order, the Sale shall not include Customer Contracts (the CEOH Contracts) in territories serviced by CEOH; provided, however that upon agreement, in writing, between CEOH, the Purchaser (NRG), and the Debtor (Volunteer) as to the transition of Customers from CEOH to the Purchaser, the parties are authorized to include the CEOH Contracts in the Sale. Nothing in the court's Sale Order shall be deemed to impair any rights of CEOH and any and all rights of CEOH are reserved and preserved.

Additionally, as provided for in the proposed sale, the Customer Contracts shall not include any Customer Contract in which the counterparty thereto (the 'Customers'): (i) has voluntarily terminated such contract prior to the transfer of such Customer to the Purchaser; (ii) has been returned to default service and subsequently enrolled with an Alternative Supplier before such Customer is transferred to the Purchaser; or (iii) has been transferred to default utility service and is no longer eligible to participate in the 'Choice' program

The court's sale order notes, "Each Customer Contract is a valid and binding agreement between the Debtor and such Customer as of the date hereof. Other than changes during the temporary transfer of a Customer to default service, including any rate changes, such transfer shall in no way impact the validity and binding nature of such Customers Customer Contract or the Debtor’s ability to assume and assign such Customer Contract to the Purchaser."

See our prior story here for the purchase price and more details concerning the book sale

Case 22-50804

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