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Retail Supplier Acquiring 100,000 RCEs Under Two Transactions; Discloses Max. Purchase Price
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Via Renewables, Inc. reported in a 10-Q that, in October 2024, Via entered into two asset purchase agreements to acquire up to 100,600 RCEs for a cash purchase price of up to a maximum of $16.9 million paid in cash or funded into escrow accounts.
Such customers are located in Via's existing markets and will begin transferring to Via's retail suppliers in December 2024 and January 2025
Via did not specifically disclose the seller or sellers in citing these two asset purchase agreements
As previously reported, in October 2024, Via entered into a transaction to acquire certain customers from Tomorrow Energy Corp. The copy of the asset purchase agreement between Via (through its subsidiary Spark Holdco LLC) and Tomorrow Energy Corp filed as an 8-K appears to be a single agreement, and not multiple agreements for certain brands or commodity types (electric vs. gas, etc). No additional asset purchase agreement has yet been filed by Via as an 8-K or as part of the 10-Q. It is unclear if Via's disclosure of 100,600 RCEs under two October 2024 asset purchase agreements refers solely to the Tomorrow Energy Corp transaction, or also refers to another, unrelated transaction. The identity of any second seller, to extent the Tomorrow transaction represents a single asset purchase agreement, is not known
Via also provided an update on customers flowing under a previously reported acquisition of a natural gas customer book from Inspire in April 2024
As previously reported, in April 2024, Via entered into an asset purchase agreement to acquire up to approximately 12,556 residential customer equivalents (RCEs) for a cash purchase price of up to a maximum of $2.3 million (though Via did not specifically identify this transaction as being the Inspire transaction).
During the three months ended September 30, 2024, approximately 7,100 customers were transferred to Via under this April 2024 transaction (with 10,700 RCEs transferring to Via to date)
In terms of its total RCE count, Via reported serving 328,000 RCEs as of Sept. 30, 2024, versus 338,000 RCEs as of June 30, 2024, and 337,000 RCEs a year ago
During the three months ended September 30, 2024, Via added a gross of approximately 22,900 RCEs "primarily" through various organic sales channels.
Average monthly customer attrition for the three months ended September 30, 2024 was 4.1%, up from 3.1% in the prior-year period, Via said.
"Our customer attrition was higher than prior year primarily driven by proactive non-renewals in New York due to regulatory changes," Via said
Via's customer acquisition cost for the three months ended September 30, 2024 was approximately $2.1 million, an increase of approximately $0.4 million, or 24%, from approximately $1.7 million for the three months ended September 30, 2023, "primarily due to an increase in the sales activity in the third quarter of 2024 as compared to the third quarter of 2023."
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October 31, 2024
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Copyright 2024 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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