Energy Choice
                            

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Updated: Utility Dropping Customers To Default Service, Says Retail Supplier Suspended From Wholesale Market

January 19, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Update, 1/23: AmericaWide Energy LLC has issued the following statement:

"NE-ISO has advised AmericaWide Energy LLC (“AmericaWide” or “AWE”) that its participation in the NE-ISO market has been suspended as a result of payment default. NE-ISO has completed the process of returning AWE’s asset load to the host utilities effective January 18, 2018. AWE actively began serving CT small business accounts in the latter half of 2016 and was serving less than 30 active accounts. AWE is not currently serving customers in any other state.

"AWE has been cooperating, proactive and fully transparent with both PURA and NE-ISO of it financial situation and will continue to do so.

"At this time AWE confirms that its Financial Assurance collateral account (“FA”) is positioned to meet the settlement of the payment default and penalty, with no financial impact on the NE-ISO or its participants.

"On Tuesday January 9, 2018, AWE’s regulatory attorney alerted PURA, that AWE was in danger of defaulting with NE-ISO. Unfortunately, with the abnormal seasonal spike in supply cost due to the severe cold snap experienced in the north east since late December 2017 coupled with ongoing and irreconcilable dispute with two minority Members of AmericaWide Energy LLC, specifically entities controlled by the former President of AWE and the founders of AWE, exacerbated the financial strain and caused the irreversible financial strain on AWE. The lack of a working and hostile relationship with the minority members and their reluctance to meet capital calls and injecting cash to cure the default obligations, AWE was only left with the outcome that all settlements will have to be satisfied from AWE’s FA account balance.

"AWE desires to remain in good standing with PURA and is committed to remaining active and to serve CT customers in the near future upon its recapitalization with new investors."

Earlier, 1/22:

The Connecticut Light and Power Company d/b/a Eversource Energy ("Eversource") informed the Connecticut PURA that CL&P has been notified by ISO-NE that effective as of January 18, 2018, Americawide Energy, LLC ("AE") has been suspended from the New England marketplace, its load asset has been retired by ISO-NE, and therefore will no longer provide retail supplier service to customers in Connecticut.

Eversource said that it is in the process of notifying the former AE customers of the following:

(1) A statement, in bold print, advising that the customer will be receiving back-up service through Eversource but they can elect to choose another electric supplier;

(2) A link to enable them to review all electric suppliers licensed in Connecticut;

(3) Eversource’s toll-free telephone number for customer service inquiries; and

(4) PURA’s address, internet web site and customer service telephone number.

In order to provide continuous service to customers, the above-described notices to former AE customers informs them that Eversource has placed them on Standard Service, effective January 18, 2018.

Per the latest utility switching reports, Americawide Energy was serving 22 customers at CL&P (1 residential) and 15 customers at UI (1 residential) as of December 2017

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