Texas Retail Provider Defaults, ERCOT Initiates Mass Transition

Update, Friday, 7/13, 1:48 est

YEP Energy has confirmed acquiring the EPCOT customers, news release below:

HOUSTON, July 13, 2012 – Texpo Power, LP, d/b/a YEP Energy, has acquired the customers and certain assets of EPCOT Electric in an agreement that was finalized on July 12, 2012.

YEP Energy will be honoring all EPCOT Electric’s customer contracts and prices. EPCOT Electric customers’ electricity service, rates, and contracts will continue with no interruption and no disconnection of service. EPCOT Electric customers’ electricity service will be transitioned from EPCOT Electric to YEP Energy within a few days following July 12, 2012.

Based in Houston, Texas, YEP Energy supplies retail electricity and natural gas to residential and commercial customers throughout North America. The acquisition further strengthens YEP Energy’s strong position in Texas and in national gas and power markets.

"The acquisition of EPCOT Electric is in furtherance of the expansion of YEP Energy’s North American retail energy business," said Kevin Meers, VP of Operations. “The transition of EPCOT Electric’s customers to YEP Energy will be seamless, and the customers’ electricity supply will continue uninterrupted. Customers do not need to take any action aside from adding YEP Energy’s contact information to their files and taking note of new payment address/account information for YEP Energy invoices going forward.”

YEP Energy looks forward to honoring the customers’ current rates with EPCOT Electric and to providing EPCOT Electric’s customers with an enhanced customer service experience. Learn more about YEP Energy and its innovative service offerings at www.yepenergy.com, including YEP’s “Operation USO Care Package E-Plans” that support our troops around the world and YEP’s “Green Earth 100% Renewable E-Plans” that help contribute to a healthier environment.

Earlier

ERCOT yesterday issued a market notice stating that TexRep1 LLC DBA EPCOT Electric defaulted under its Standard Form Market Participant Agreement (SFA) as of 17:00 CPT on July 12, 2012.

Pursuant to Protocol Section 15.1.3, Mass Transition, and Retail Market Guide (RMG) Section 7.11, Mass Customer Transition Process, ERCOT began the Mass Transition of EPCOT's customers on July 12, 2012.

ERCOT stated that all ESI IDs associated with EPCOT will be gained by one designated Competitive Retailer (CR), and therefore, no ESI IDs will be transitioned to Providers of Last Resort (POLRs).

The size of the associated load is approximately 440.96 MWhs per day and the number of ESI IDs involved is approximately 5,736.

EPCOT customers have reported on various social media sites receiving a letter from YEP Energy earlier in the week informing customers of EPCOT's market exit, and including an offer to transfer to YEP Energy. Based on this, and other information from market participants, it is believed that YEP Energy is the designated Competitive Retailer acquiring all of the EPCOT Electric customers through the mass transition; however, YEP Energy could not be reached as of publication time to confirm this. EPCOT Electric also could not be reached as of publication time.