What you should know if your electricity provider goes out of businessMarch 4, 2021
HOUSTON – The fallout continues after last month’s historic winter storm that crippled the Texas power grid.
The Electric Reliability Council of Texas announced this week that retail providers are behind by $345 million in payments. The power providers that are in default of payment are now trying to figure out what is next for their companies and what to do with their customers. Other providers on the ERCOT list say they are not behind on payments and their customers do not have to make a change.
KPRC 2 Investigates has reached out to companies that ERCOT says are behind on payments to get more information for customers across Texas. Below are their responses.
Retail Electric Provider (REP): This is the company you pay for your electric service.
The Provider of Last Resort (POLR): This company becomes your provider when your REP exits the market for any reason. If your REP were to go out of business, the POLR becomes your temporary REP so that you do not experience an interruption in service.
Volunteer Retail Electric Providers (VREP): A REP that has volunteered to provide POLR service.
Energy Monger: It’s time to start ‘moving your customers’
Energy Monger sent a letter out to employees and brokers that said, in part: “At this time I think it is appropriate to start moving your customers to another provider of your choice. I have not been given any specific date of an ERCOT breach, but the POLR process looks to be imminent.”
Entrust Energy: Rhythm Energy is taking over all contracts
Entrust customers received a letter indicating their contracts would be rolled over to Rhythm Energy.
According to Rhythm Energy, the process started last week and will continue this week. Entrust Energy customers will not need to seek a POLR. Entrust Energy customers will not have an interruption in service.
Entrust Energy is based in Houston. According to its website, Entrust served over 170,000 customers throughout the United States.
Read more here.
Griddy: Removed from Texas market
Last week, it was reported that Griddy customers were moved to other energy providers after Griddy was removed from the Texas market.
Instead of being switched to POLRs immediately, many Griddy customers will go to VREPs. There are three in the greater Houston region (Reliant, Gexa and TXU).
Brazos Electric Power Cooperative, Inc.: Chapter 11
Brazos Electric Power Cooperative, Inc., has filed for Chapter 11 bankruptcy protection. According to its website, the Waco-based company is, “Texas’ oldest and largest, generation and transmission power cooperative serving 16 distribution Member cooperatives that serve more than 1.5 million Texans.”
Rayburn Country Electric Cooperative: Owes $41 million
ERCOT reported that Rayburn Country Electric Cooperative owes $41,619,069.04. According to CEO David Naylor, Rayburn Country Electric Cooperative is in dispute with ERCOT over the amount. It is working through that with ERCOT.
“We are sensitive to the impact it has on the members,”…