Start-up Retail Supplier Independence Electricity to Enter New England Markets

A new retail supplier, Independence Electricity, has indicated that it will enter the retail electric markets in all five New England states with electric choice, to serve all customer classes.

The company is not related to Independence Energy Group LLC, which is an indirect subsidiary of NRG Energy.

According to an application for market-based rate authority at FERC, Independence Electricity is the sole Member of Independence Hydro, LLC, a limited liability company that expects to acquire hydroelectric generation assets but does not currently own or control any such assets or other assets.

Specifically, Independence Hydro, LLC expects to close on purchase of 3 hydroelectric facilities with a combined licensed capacity of 369 kilowatts in Belfast and Swanville, Maine on the earlier of June 6, 2012, or FERC approval of a license transfer petition.

Independence Hydro, LLC is in discussions with numerous small hydroelectric generators in Maine about entering into long-term leases for their power. "Some such small generators are struggling to meet expenses in a depressed wholesale market environment, and an expeditious move to such leasing arrangements will help one or more of those generators to remain cash positive, reserving the capacity benefits of said generator for the ISO-NE control area<" Independence Electricity said.

Independence Hydro, LLC does not anticipate obtaining any generation facility with capacity over 1 megawatt, nor obtaining more than 3 megawatts of capacity in total.

Independence Electricity describes itself as a competitive electricity provider, and said that its intent is to provide power supply primarily to Residential and Small Business ratepayers in the states of Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island, and to Medium Commercial, Large Commercial, and Lighting customers in those states as well.

Independence Electricity expects to file applications for licenses as a retail competitive electricity provider in Connecticut, Maine, Massachusetts, New Hampshire and Rhode Island.