Vistra CEO: Texas Retail Market Would Have Seen "Carnage" Without PUC REP Reimbursement Program

Curt Morgan, Vistra Energy's president and chief executive officer, said during an earnings call today that the Texas retail electric market would have seen, "carnage", had the Texas PUC not adopted a previously reported Electricity Relief Program that reimburses retail electric providers $0.04/kWh for energy charges, and does not charge TDU fees to REPs, for eligible customers for whom the REP cannot disconnect for nonpayment

Morgan said that the program was "helpful" for some REPs -- those not as well-capitalized -- but Morgan noted that the reimbursement program does not include margin for the REP

Morgan said that such margin, "will be difficult to collect on," once the Electricity Relief Program ends

As such, Morgan believes there is still "significant" risk to smaller REPs in Texas heading into the summer

Whether that results in any retail acquisition opportunities for Vistra remains to be seen, but Morgan reported that there has been, "movement afoot" among smaller retail providers to market their books