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Retail Supplier Seeks Approval For Acquisition
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Citizens Choice Energy, LLC ('Citizens Choice')
and Genie Retail Energy, Inc. ('GRE' or 'Buyer,' and, together with Citizens Choice, the
'Applicants') have sought FERC approval for a transaction under which GRE, the Buyer, will acquire 100 percent of the limited liability company
interests in Citizens Choice Energy, LLC from Tari Corporation ('Tari' or 'Seller,' collectively with the Citizens Choice and
GRE, the 'Parties') (the 'Transaction').
Upon closing of the Transaction, Citizens Choice will
be a wholly-owned subsidiary of GRE.
Tari Corporation ('Tari'), a
New Jersey corporation, is the sole owner of Citizens Choice and controls all of the voting
securities of Citizens Choice
Citizens Choice is authorized to make retail sales of power in New York
Elie Katz is CEO and President of Tari and of Citizens Choice. There are no common
officers and directors between Citizens Choice and Tari on the one hand and GRE on the other.
In a 10-K filed on March 14, 2025, Genie Energy Ltd., the ultimate parent of GRE, had noted that, while Genie Energy Ltd. does not
own any interest in Citizens Choice Energy, LLC (CCE), Genie Energy Ltd. has, since 2011, provided Citizens Choice Energy, LLC with substantially all of the cash required to fund its operations. In the 10-K, Genie Energy Ltd. had stated that Genie Energy Ltd. determined that it has the
power to direct the activities of Citizens Choice Energy, LLC that most significantly impact its economic performance and it has the obligation to absorb losses of Citizens Choice Energy, LLC that could potentially be significant
to Citizens Choice Energy, LLC on a stand-alone basis. Genie Energy Ltd. therefore determined that it is the primary beneficiary of Citizens Choice Energy, LLC, and as a result, Genie Energy Ltd. in the 10-K consolidates Citizens Choice Energy, LLC within its GRE segment.
In a 10-Q filed on August 7, 2025, Genie Energy Ltd. ("the Company") stated, "In April 2025, the Company signed an Equity Purchase Agreement with Tari Corporation to acquire 100% interest in CCE for $1.0 and the forgiveness of all intercompany
balances of CCE with the Company, subject to approval from the Federal Energy Regulatory Commission, which is pending as of June 30, 2025."
In the FERC application, GRE stated, "Genie Energy Ltd. ('Genie Energy'), the ultimate upstream owner of the GRE, the Buyer,
has maintained a long-standing operational relationship with Citizens. While Genie Energy does
not own any equity interest in Citizens, it has provided Citizens with substantially all of the funding
necessary to operate since 2011 and supplies various back-office and operational services,
including supply scheduling, IT support, customer service and regulatory compliance."
In the FERC application, GRE stated, "From an accounting standpoint, Genie Energy treats Citizens as a Variable Interest Entity
and consolidates it within its retail segment. This treatment reflects Genie Energy’s exposure to
Citizens’ economic risks and benefits, but does not reflect legal ownership or operational control.
Importantly, the CEO and President of both Citizens and Tari retains day-to-day managerial and operational control over the company. This business relationship does not involve control of any
transmission facilities or assets and does not affect the wholesale electric market activities of
Citizens Choice or its affiliates."
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September 29, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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