Parent of Viridian Energy to Combine with Public Power, LLC

Regional Energy Holdings, Inc. and Public Power, LLC today announced their intent to combine.

Privately held Regional Energy Holdings, Inc. is the parent of several retail suppliers operating in 11 states, including Viridian Energy, Cincinnati Bell Energy, and FairPoint Energy. Public Power, a privately held company, is a retail energy company operating in seven states.

The resulting company will operate under the name Crius Energy, and will serve as the parent of a family of retail energy brands that collectively serve more than 400,000 residential and commercial customers and generated combined revenue of approximately $315 million in 2011.

Terms of the transaction were not disclosed.

"Combining the strengths of our two great organizations, Crius Energy enjoys all the right attributes to establish its leadership in the fast-growing retail energy sector," said Michael Fallquist, Regional Energy Holdings Chief Executive Officer.

"We are excellently positioned to grow market share, scale operations, expand our customer reach, and further develop our robust distribution and marketing channels. This marks a decisive step in our expansion strategy, boosting future prospects for all companies in the Crius Energy family of brands," Fallquist said.

"We are extremely proud of the success our independent associates, strategic partners and employees have achieved. Together, we look forward to setting the standard for innovation in this dynamic industry," Fallquist added.

The companies said that the two organizations' complementary geographic footprints and distribution channels will allow Crius Energy to bolster operations in existing markets.

"We are excited about the prospects this combination unleashes," said Bob Gries, Chief Executive Officer of Public Power. "With Crius Energy, we have created a solid platform to accelerate the growth of our businesses and enable them to achieve their full potential. We plan to continue our search for additional opportunities that fit well with our standing as a leading regional energy supplier. There is a very promising growth story for us," Gries said.

Crius Energy will become the parent company to Regional Energy Holdings' wholly owned subsidiaries – Viridian Energy, Cincinnati Bell Energy and FairPoint Energy. Public Power as well as the foregoing Regional Energy Holdings entities will retain their brand name as they join the Crius Energy portfolio.

The consummation of the transaction is subject to customary closing conditions and receipt of Federal Energy Regulatory Commission approval. The transaction is expected to close in August 2012.

Under the new company structure, Michael Fallquist will become the Chief Executive Officer of Crius Energy. Bob Gries will assume the role of Chairman of the Board of Directors for Crius Energy.