FERC Dismisses Dueling Applications To Control Retail Supplier

FERC dismissed without prejudice separate applications from Vantage Commodities Financial Services II, LLC and GoCOM Corporation for authorization of the acquisition of Bluco Energy, LLC

As previously reported, in February BluCo filed an application with FERC requesting prospective authorization of a November 2014 share exchange agreement transaction pursuant to which GoCOM Corporation purportedly acquired 100 percent of the membership interests in BluCo.

However, in March, Vantage Commodities Financial Services II, LLC filed an application with FERC requesting prospective authorization of a transaction under which Vantage Commodities Financial Services II purchased all of the limited liability company membership interests in Bluco after, as the supplier's credit provider, foreclosing on the supplier and conducting an auction for the company. Vantage Commodities Financial Services II alleged that the purported sale to GoCOM was not valid as it was prohibited under its credit agreement with BluCo

GoCOM Corporation responded that ownership of Bluco is now an outstanding dispute before the New York Supreme Court.

FERC noted that on June 17, 2015, Vantage submitted a letter stating that the parties to the ownership dispute litigation had reached a settlement in principle. The letter further stated that Vantage had no current plans to supplement or withdraw the Vantage application and requested that the Commission defer consideration of both applications while the parties negotiate. Vantage stated that it would provide an update to the Commission no later than July 1, 2015 on the status of the ownership dispute litigation, with the intention of providing the Commission with sufficient time to rule on both pending applications. FERC stated that no party has made a subsequent filing.

"We currently have two competing FPA section 203 applications before us, and each requests Commission authorization for the transfer of the same assets to two different parties. Based on the record of these proceedings, we are unable to rely on the accuracy of the description of the involved parties provided in each application, and we therefore deny both applications without prejudice," FERC said, in dismissing both applications without prejudice