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Retail Supplier Alleged To Have Defaulted, Credit Provider Exercises Step-in Rights & Says Customers Should Be Dropped To Default Service
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A regulatory filing averred to be from the Chief Transition Officer of Current Energy
and Renewables, Inc. (Current) stated that, "due to Current’s insolvency and
inability to pay amounts owed to Boston Energy Trading and Marketing LLC ('BETM') over
several months, Current is in default of its CRES [competitive retail electric service] obligations under the terms of the tariffs of Ohio
Power Company d/b/a AEP Ohio ('AEP Ohio'), Duke Energy Ohio, Inc. ('Duke'), The Dayton
Power Light Company d/b/a AES Ohio ('AES Ohio'), and FirstEnergy."
The filing from the Chief Transition Officer alleged, "On April 2, 2024, BETM notified Current that is was exercising its step-in rights under the
Pledge and Security Agreement. By exercising its step-in rights, BETM has the power to exercise
all powers of ownership over Current. Exercising its step-in rights allowed BETM to remove all
of Current’s directors and officers, and appoint a Chief Transition Officer ('CTO') to: 1) evaluate
the financial condition of Current; 2) oversee the operations; and 3) ultimately direct actions of
Current."
The filing from the Chief Transition Officer alleged, "Due to Current’s insolvency and inability to pay its debts, and for the protection
of Current’s Ohio retail customers, Current and BETM would not object to termination of
Current’s CRES agreements and the ultimate transfer of Current’s CRES customers to the EDUs’
standard service offer."
In notices from Current's Chief Transition Officer to the Ohio EDCs, the Chief Transition Officer alleged, "CER [Current] is insolvent, demonstrated by CER failing to pay several million in outstanding
invoices that have been due since 2023. BETM understands that CER has debts in excess of the
value of its assets. Thus, CER cannot pay its regular debts as they become due. Therefore, CER
should be deemed in default under the Tariff and CER's end-use customers should be moved to
the Company's Standard Offer Rate."
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April 30, 2024
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Copyright 2010-24 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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