Texas TDUs Seek to Draw on REP's Letter of Credit to Cover Non-Payment

Five Texas transmission and distribution utilities petitioned the Public Utility Commission of Texas to distribute proceeds from the letter of credit provided by Reach Energy LLC, stating that they are collectively owed more than $450,000.

Reach Energy LLC defaulted at ERCOT in May, with most customers being switched to Entrust Energy prior to a POLR drop.

CenterPoint Energy Houston Electric, LLC alleged that beginning in early May 2014, Reach failed to pay any charges from CenterPoint Houston. As of July 1, 2014, CenterPoint Houston is owed $419,967.05, including late charges. CenterPoint Houston holds $104,335.31 in deposit from Reach. Net of that deposit, CenterPoint Houston estimates it is owed $315,628.82 from Reach as of July 1, 2014.

Oncor said that as of July 1, 2014, it is owed approximately $104,469.84 from Reach, including penalty charges totaling approximately $8,692.73 from April 28, 2014 to June 30, 2014. Oncor holds approximately $7,149.40 in transition charge deposits from Reach. Net of the transition charge deposits, Oncor estimates it is owed approximately $97,320.44 from Reach as of July 1, 2014.

As of July 1, 2014, AEP Texas Central said that it is owed $47,920.52 from Reach, including late charges. AEP TCC holds $14,886.51 in deposit from Reach. Net of that deposit, AEP TCC estimates it is owed $33,034.01 from Reach as of July 1, 2014.

As of July 1, 2014, AEP Texas North said that it is owed $2,037.02 from Reach, including late charges. AEP TNC holds no deposit from Reach.

Texas-New Mexico Power said that, including penalty charges of $937.35, TNMP estimates it is owed $10,871.95 from Reach as of July 1, 2014. TNMP holds no deposit from Reach.