UI Considers Cianbro Energy in Material Breach of Supplier Agreement

United Illuminating has informed Cianbro Energy, LLC that UI considers Cianbro Energy to be in material breach of Cianbro's obligations under the supplier service agreement executed with UI, due to an unpaid invoice.

The invoice, whose amount was not listed, is for services rendered under the supplier service agreement, specifically, supplier setup and initialization. Cianbro Energy, which is a subsidiary of the construction company Cianbro for purposes of self-supplying its electricity supply, is currently serving load at UI according to UI's October migration report.

In a letter to Cianbro Energy also filed with the DPUC, UI stated that it has received an email from Cianbro Energy indicating that the invoice will remain unpaid.

UI stated that in accordance with the terms of the supplier service agreement, it may terminate the supplier service agreement with Cianbro within 15 days of Cianbro's receipt of UI's written notice of material breach, which was sent November 23, if the breach is not cured.

Previously, as only noted in Matters, Cianbro had asked the DPUC for a waiver of the supplier initialization fees at Connecticut Light & Power and UI (4/9/10). Cianbro had argued that the supplier initialization fee of $3,450.80 at each utility is, "intended to recover the full cost of performing the EDI testing and training with the new supplier." However, as Cianbro said that it would rely on the provision allowing self-suppliers to utilize email rather than EDI, Cianbro argued that it should not have to pay such EDI setup fees. The DPUC has not issued any formal response to Cianbro's request.