There were a couple of news items that hit the Texas electricity market this week. Neither of them on their own require enough analysis to warrant an entire blog post, so I’m going to stick them together in this one blog post. First up, we have TXU Energy acquiring the customers of Mega Energy. This is somewhat surprising because unlike other bigger companies (such as Reliant, Direct Energy, Just Energy, Constellation Energy) TXU hasn’t typically increased the size of their customer base through acquisition. Additionally, it’s been speculated that TXU has more than their fair share financial concerns, which one wouldn’t think would leave a lot of room to be buying up other customers.
That being said, this move seems to be happening quickly, as TXU and Mega have already announced the move on social networking sites, and TXU has said the transition will begin over the next few weeks. TXU has also claimed that Mega Energy customers will be kept in their remaining contract terms and have an equal or lower Cancellation Fee applied to their contracts, and that their rate will be lower than their current Mega Energy rate.
The other piece of news is that Glacial Energy and the PUC have “reached an agreement in principle” on the PUC’s efforts to revoke Glacial Energy’s certificate to sell electricity in Texas. Which sounds to me like Glacial’s certificate isn’t, in fact, going to end up being revoked. Because that doesn’t seem like something they’d agree to in a negotiation. In fact, I don’t think that would even qualify AS a negotiation.
No details have been disclosed about the particulars regarding the settlement.