EnergyChoiceMatters.com

Crius Energy Acquires Customer Book

December 15, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

On December 8, 2016, Abest Power & Gas executed an Asset Purchase Agreement with Public Power, LLC, a unit of Crius Energy, pursuant to which Public Power will acquire Abest’s retail electric supply customers.

Abest serves customers in several Northeast states including Connecticut and Massachusetts. It is also licensed in New York and New Jersey

In Connecticut, Abest serves 4,066 customers, of which some 3,100 are residential.

Public Power will abide by the price and other terms of the Abest contracts.

In a filing with the Connecticut PURA, Abest said, "Abest is assigning its customer contracts to Public Power because Abest’s current contract with its wholesale supplier is about to expire and Abest requires additional time to engage in a new strategic partnership for the wholesale supply of electric service. Abest does not intend to withdraw its supplier license."

On December 14, the Connecticut PURA issued a draft decision which would re-open Abest's licensing proceeding, "for the purpose of revoking the Electric Supplier License of Abest Power, LLC due to the Company’s failure to comply with relevant portions of the General Statutes of Connecticut, the Regulations of Connecticut State Agencies, and the Authority’s Decisions."

It was unclear whether the draft decision to re-open Abest's licensing docket for the stated purpose of revoking the company's supplier license resulted from Abest's statement regarding its wholesale supply situation, or other regulatory matters.

On October 28, PURA had sent a letter to Abest Power & Gas alleging that, "The Authority is aware that Abest Power & Gas, LLC's (Abest) bond number B30000525 was canceled on May 6, 2016. A replacement security has not been provided to the Authority since the bond was canceled. Without a valid form of security, Abest currently [as of 10/28] lacks the financial responsibility and capability to operate as a licensed electric supplier."

Additionally, on November 28, PURA issued a Notice Of Violation And Assessment Of Civil Penalty for what the notice said was failure to submit alternative compliance payments. "Abest failed to submit receipts showing payments of $1,095,233 to CL&P, $166,017 to UI and $54,428 to the CEF by October 28, 2016, in violation of PURA Order No. 4 in Docket No. 15-09-18," the Notice Of Violation stated

"Abest is required to submit receipts showing remittance of alternative compliance payments (ACP) totaling $1,315,678 by October 28, 2016. The Company has not submitted such receipts to date. Pursuant to Conn. Gen. Stat. §16-41, the Authority hereby assesses Abest a civil penalty equal to 5% of the required ACP for every month or part of a month that the payment is late, in the aggregate amounts of $65,784 if the ACP is paid on or before November 28, 2016; $131,568 if the ACP is paid on or before December 28, 2016; or $197,352 if the ACP is paid on or before January 28, 2017," the Notice stated.

Abest has the right to contest the Notice Of Violation within 20 days of issuance.

Abest Power issued the following statement to EnergyChoiceMatters.com: "Abest has entered into an Asset Purchase Agreement with Public Power to ensure the orderly transition of its customers to an established and well-regarded energy provider. Following the completion of this transaction, Abest expects to restructure its affairs and address its obligations to PURA and others. We are very confident that these actions will further the best interests of our customers and other stakeholders. We are hopeful that the Commission will be supportive of our initiatives."

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