ConEdison Solutions Preps For Sale of Retail Supply Biz, Says No Specific Buyer Yet Identified

ConEdison Solutions is taking steps to prepare for a potential transaction involving the sale of ConEdison Solutions' existing retail electricity and natural gas business

"At this time, no specific buyer has been identified to acquire CES’s [ConEdison Solutions'] retail commodity business," ConEdison Solutions said

As previously reported, Consolidated Edison, Inc. has initiated a plan to actively market and sell the retail electric supply business of ConEdison Solutions. In a 10-Q filed earlier this month, Consolidated Edison, Inc. said that it expects the sale to close within the next twelve months.

ConEdison Solutions has created a new subsidiary CES Retail Energy Supply, LLC in anticipation of such a potential transaction, as CES Retail Energy Supply applied for retail licenses in various jurisdictions in which ConEdison Solutions operates

While the actual transaction implementation plan will depend on the buyer that is selected and the negotiated structure of the transaction, CES Retail Energy Supply has been formed as a potential vehicle for transferring ConEdison Solutions' existing customers to the buyer.

In the event that this transaction structure is adopted, ConEdison Solutions and CES Retail Energy Supply anticipate the following process:

1. CES Retail Energy Supply applies for and receives approval to operate as a retail electric and/or gas supplier in each state in which ConEdison Solutions currently serves customers.

2. ConEdison Solutions will enter into a sale agreement with a buyer to sell ConEdison Solutions' existing retail commodity business, subject to any required regulatory approvals.

3. ConEdison Solutions will assign its existing customers to CES Retail Energy Supply in accordance with customer contract terms permitting such assignment.

4. Upon closing of the transaction, the buyer will assume ownership of CES Retail Energy Supply.

5. Shortly after closing, the buyer will change the name of CES Retail Energy Supply to a different trade name chosen by the buyer.

ConEdison Solutions also anticipates that the transaction will involve the buyer acquiring all of the assets supporting ConEdison Solutions' retail commodity business. This will involve the transfer of ConEdison Solutions' existing capabilities, systems, processes and employees that currently support ConEdison Solutions' obligations as a retail supplier. These resources and capabilities will be gradually transitioned over to CES Retail Energy Supply and the eventual buyer over the course of the transaction transition period.