ResCom Energy to Assign Connecticut Customers to Public Power, Making Public Power Largest Conn. Supplier

ResCom Energy, LLC and its marketing partner Positive Energy Electricity Supply, LLC have entered into an agreement to assign all of ResCom's Connecticut electric customers to Public Power, LLC, the parties jointly informed PURA this morning.

Joseph Ventura, President of Positive Energy Electricity Supply, LLC, told Matters that the transaction was a strategic decision taken to monetize the investment made in Connecticut by ResCom and Positive Energy.

Terms of the transaction could not be disclosed due to a confidentiality agreement among the parties.

ResCom Energy had grown into the largest electric supplier in Connecticut, by accounts. As of the end of October, ResCom was serving nearly 86,000 Connecticut accounts, of which nearly 82,000 were residential customers.

Ventura noted that ResCom and Positive Energy have worked "extremely hard" to become the state's top electric supplier in just a few short years, and felt the time was right to monetize this effort.

Public Power, as of October 31, was serving about 52,000 accounts, with 48,000 of those accounts being residential. Assuming no major changes in each supplier's respective customer counts during the first three weeks of November, Public Power will become the dominant electric supplier in Connecticut with 138,000 accounts -- nearly double the total of the second largest provider (by accounts), Dominion Retail, which had 77,000 accounts as of October 31.

Public Power's 138,000 accounts would equal about 21% of the total migrated accounts at Connecticut Light and Power and United Illuminating.

Ventura told Matters that the transaction will allow ResCom and Positive Energy to focus on markets outside of Connecticut, providing capital for growth as well as freeing up resources.

Public Power told PURA that it has agreed to assume the contractual obligations of ResCom to its customers under the same terms and conditions. However. Public Power advised PURA that it will not enforce the so-called "automatic invalidation clause" in the ResCom contracts, which was intended to allow ResCom to re-enroll a customer for whom ResCom received a switch request based on the customer's original authorization to take ResCom service (on the position that any such switch request during the contract term represented a slam).

The suppliers informed PURA that they have structured the transition to be uneventful from the customer's perspective. There will be no interruption in electric service or inconvenience to the customer.

ResCom has provided Public Power with an electronic file of its customer accounts in a format compatible with the requirements of UI and CL&P, as applicable, and with the billing and metering protocols adopted by PURA. ResCom will continue to provide electricity to its customers under current terms until such time as the applicable electric distribution company switches the customer to Public Power. Thereafter, Public Power will supply electricity under the same contract terms as ResCom.

Each of ResCom's customers has been provided written notice of the assignment by either first-class U.S. Mail, postage prepaid, or email.

Public Power is not purchasing ResCom's electric supplier license, which is being retained by ResCom. ResCom and Positive Energy have agreed not to compete against Public Power in Connecticut for a period of three years, after which time they are free to re-enter the Connecticut competitive marketplace for the retail sale of electricity should they so choose.

Furthermore, the assignment of the customer contracts will not change the corporate structure of Public Power, ResCom, or Positive Energy. Public Power is not purchasing an equity interest in either ResCom or Positive Energy; nor is it acquiring the assets of either company other than the assigned customer accounts.

Public Power will not use Positive Energy for marketing its services in Connecticut.

In its letter to customers, ResCom informs customers that through assignment to Public Power, customers are now eligible for the Public Power Perks program, an ongoing rewards program offered by Public Power.

The notification letter from ResCom also includes a free Pharmacy Discount Card, and informs customers that after four months of service with Public Power, the customer will receive a Nationwide Getaways Vacation 3 Day and 2 Night Hotel Stay Certificate, valued at $300.