Retail Supplier Files For Bankruptcy
November 15, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Starion Energy, Inc. and several affiliates have filed voluntary petitions under Chapter 11 with the United States Bankruptcy Court for the District of Delaware
Starion in a motion said that the circumstances leading to the filing were injunctions granted by a Massachusetts state court, which has required two utilities to hold amounts (receivables) otherwise due to Starion as security against claims made by the Massachusetts Attorney General in a suit against Station. In total, the AG sought to secure $30.6 million.
Starion said in a motion that, as of November 13, 2018, National Grid held $2,478,936.33 of Starion’s assets.
Starion said in a motion that, as of November 5, 2018, Eversource held $1,094,162.02 in Starion’s assets.
Starion said in a motion that, as of November 13, 2018, a total of $3,573,098.35 in Starion’s assets were being held
"The grant of the attachment and injunction against payment of Starion’s funds in the possession of National Grid and Eversource has put severe strain on Starion and will put Starion out of business," Starion said in a motion
Starion said in a motion that, "Starion must purchase energy on the wholesale market in order to supply energy to its customers, and the approximate monthly cost for Starion to purchase this energy varies by month, which totaled $17.8 million for the first eight months of 2018 for Massachusetts customers alone, excluding the costs of Renewable Energy Certificates. Starion must use the funds it receives to pay the millions of dollars in costs each month required to purchase wholesale energy. Without funds, it cannot purchase energy and thus cannot supply energy to its customers. It is essential that Starion receive the $30.6 million due to it in order to keep its business running."
The Mass. AG has filed a motion with the bankruptcy court seeking a ruling that an automatic stay provision does not apply to the AG's state action at Commonwealth of Massachusetts v. Starion Energy, Inc., et al., No. 18-3199H
Starion provided the following statement to EnergyChoiceMatters.com:
"The Massachusetts Attorney General’s Office has expressed an intent to shut down the residential retail energy market in Massachusetts and has attempted to introduce legislation to accomplish their goals. In October 2018, the Attorney General’s Office filed suit against Starion Energy, Inc., asserting various unsubstantiated claims. What the Attorney General’s Office could not achieve through the regulatory and legislative process, they seem to be attempting to achieve through litigation. Although no trial has taken place, the Attorney General sought and a court has temporarily ordered a preliminary injunction that would cripple the company. The AGO seeks to prevent the company from receiving the funds that would flow to Starion from servicing its customers in the Massachusetts utility territories, while still requiring Starion to service these customers. Starion has attempted to engage in good faith settlement negotiations and will continue to do so; however, the Attorney General’s Office has insisted on pursuing these measures which are detrimental to the health of the company. Without these cash receipts, Starion would not be able to satisfy its creditors and for that reason has been forced to seek the assistance of the bankruptcy court in a chapter 11 filing. Both the Massachusetts legislature and Department of Public Utilities (DPU) support and encourage a free, open and vibrant competitive energy supply market. The Attorney’s General’s efforts to shut down both the market and Starion seem to be contrary to the public interest established by the legislature and DPU."