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Regulator Says Retail Supplier's Purchase of Competing Supplier Constituted "Transfer" Of License, Required Regulator's Approval

Regulator Prohibits Retail Supplier From Enrolling New Customers While Acquisition Reviewed

December 15, 2016

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

The Connecticut PURA, in a letter to Calpine Energy Solutions, LLC, said that Calpine's acquisition of Noble Americas Energy Solutions, LLC constituted a "transfer" of Noble's license, and, as such, required PURA approval.

As a result, "Calpine [Energy Solutions, LLC] may not, ... enroll any new customers until the Authority approves of the electric supplier license transfer."

"Therefore, Nobel [sic] and/or Calpine [Energy Solutions, LLC] will be removed from the Connecticut electric supplier rate board," PURA said

PURA said that it will permit Calpine Energy Solutions, LLC to continue serving Noble's existing customers.

PURA stated, "General Statutes of Connecticut §16-245(j) expressly provides: 'No license may be transferred without the prior approval of the authority.' While Noble provided notice to the Authority of the anticipated acquisition, it did not submit a request for approval of the transfer of Nobel’s [sic] electric supplier license to Calpine. Moreover, no information was submitted to the Authority regarding Calpine’s requisite technical, managerial, and financial capability for the Authority to properly review the transfer. Consequently, the Authority never approved of the electric supplier license transfer."

"Notwithstanding, since Calpine already acquired a 100% ownership interest in Noble as of December 1, 2016, the Authority will permit Calpine to continue serving Nobel’s [sic] existing customers. Calpine may not, however, enroll any new customers until the Authority approves of the electric supplier license transfer. Therefore, Nobel [sic] and/or Calpine will be removed from the Connecticut electric supplier rate board. The Authority intends to hold a hearing and conduct a review of Calpine’s technical, managerial, and financial capability after a revised 5-year review application with Calpine’s information is submitted. In the interim, Calpine is directed to file an updated security reflecting the name and ownership change no later than December 30, 2016," PURA stated

Calpine Energy Solutions, LLC asked PURA to reconsider its decision, arguing that under the purchase of Noble Americas Energy Solutions, LLC, no license transfer occurred, as the Noble Americas Energy Solutions business was purchased in its entirety, and the entity holding the license has not changed (the company was simply renamed under the purchase).

"I would like to take this opportunity to clarify that the license is not being transferred and will remain with the same entity. Calpine Corporation purchased the entire Calpine Solutions business including the legal entity, essentially as a 'stock purchase'. Calpine Solutions is materially the same company that has been operating in the State of Connecticut as an approved Electric Supplier since PURA first issued our retail license in 2003 in Docket 03-07-07. Our license was renewed in 2008 and was amended in 2011 for our name change from Sempra Energy Solutions to Noble Americas Energy Solutions (Docket No. 11-08-13). Other than corporate ownership, the technical, managerial and financial capability of Solutions these past 13-years has remained materially unchanged. We are the same company we have always been with no change in federal tax id and no change in D&B number," a Calpine representative said in an initial response to PURA.

"An updated 5-year renewal application incorporating the few additions to corporate officers (note that the Noble/Calpine Solutions' president and list of vice presidents is unchanged), and changes to the website address and e-mail addresses, as well as a revised surety payment bond, have been filed in Docket No. 11-08-13," Calpine said

"Calpine Solutions respectfully requests that PURA reconsider its directive to Calpine Solutions to suspend new customer enrollments because the license is not being transferred. Calpine Solutions is the same company, people, and management as Noble Solutions. We are an electric supplier with over a decade of good standing with PURA and no formal customer complaints. Denying us the ability to enroll new customers until such time as the 5-year renewal application is approved is a restrictive hardship that we do not believe is supported by the facts in this case," Calpine said

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