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PSC Starts Process to Review Whether To Revoke Retail Supplier's Licenses

April 24, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Michigan PSC has opened a formal proceeding to review whether to revoke the electric and natural gas supplier licenses of various Glacial Energy Holdings companies.

The PSC noted that the continued licensures of Glacial Energy of Illinois, Inc., and Glacial Natural Gas, Inc., are conditioned on compliance with the relevant statutory and regulatory requirements.

The PSC's order states as follows:

"On April 10, 2014, Glacial Energy Holdings (Glacial) filed for bankruptcy protection in the United States Bankruptcy Court in Delaware. Glacial Natural Gas, Inc., and Glacial Energy of Illinois, Inc., are wholly-owned subsidiaries of Glacial. A sale order signed by the Bankruptcy Court on June 17, 2014, approved the sale of substantially all of Glacial’s assets to Platinum Partners Value Arbitrage Fund LP (Platinum) or its designee. Platinum then designated Agera Energy LLC (Agera) to acquire ownership of the Glacial assets being transferred. Agera was to assume Glacial’s retail electric and gas businesses upon each state commission’s licensing approvals."

"On October 2, 2014, Agera applied for an AGS license in Case No. U-17727 and an AES license in Case No. U-17728. On January 15, 2015, Agera filed a request to withdraw its applications. These requests were granted by the Commission in orders issued on January 27, 2015."

"Because it appears that Glacial and its subsidiaries no longer exist and because Platinum’s designee, Agera, withdrew its applications, arguably neither Glacial Energy of Illinois, Inc., nor Glacial Natural Gas, Inc., meet the statutory and regulatory responsibilities of a licensed AES or AGS. However, under Michigan law, a formal action to revoke an AES or AGS license must be preceded by an informal notice and discussion with the licensee regarding the intended action, and providing an opportunity for the licensee 'to show compliance with all lawful requirements for retention of the license.' MCL 24.292; Rogers v State Board of Cosmetology, 68 Mich App 751; 244 NW2d 20 (1976)."

"On January 30, 2015, the Commission Staff (Staff) sent certified letters inviting Glacial representatives to participate in an informal meeting to discuss the welfare of its customers and to initiate proceedings to consider whether the public interest required further administrative action concerning Glacial’s AGS and AES licenses. On February 10, 2015, Glacial representatives participated in discussions with the Staff regarding Commission concerns that a bankrupt company and unlicensed entities are serving Michigan gas and electric customers. Upon conclusion, Glacial agreed to attempt to transfer its book of customers to a Michigan licensed gas and/or electric supplier. To date, there is no evidence of any customer transfers."

"The Commission finds that the preliminary steps for license revocation required in MCL 24.292 and Rogers, supra, have been completed and that the Commission may now commence formal proceedings to consider whether to revoke Glacial’s AES and AGS licenses. If Glacial desires to participate and attempt to retain its AES and AGS licenses, the company shall file an intervention in Case No. U-17866 by June 9, 2015, and appear at a hearing on June 16, 2015, before Administrative Law Judge Martin D. Snider (ALJ) that will take place at 10:00 a.m. at the Michigan Public Service Commission’s offices, 7109 W. Saginaw Highway, Lansing, Michigan. The Staff shall also attend the hearing."

"In the event Glacial does not intervene and/or fails to attend the hearing, the ALJ shall, after receipt of testimony and exhibits from the Staff, provide an oral Proposal for Decision determining whether Glacial’s AES and AGS licenses should be immediately revoked by the Commission. If Glacial intervenes and attends the hearing, the ALJ shall treat the hearing as a prehearing conference in a separate contested revocation case brought in the joint dockets for Glacial’s licenses, unless Glacial agrees to voluntarily relinquish its licenses or the Staff requests dismissal of further proceedings against Glacial."

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