A press release from Affiliated Energy Group this morning:
HOUSTON – April 22, 2008 – AEG Affiliated Energy Group has been retained by a mid-size Texas retail electricity provider seeking to explore strategic merger, acquisition and sale opportunities. AEG is fielding inquiries for its client on a blind inquiry basis.
“We believe the Texas retail energy market is ripe for opportunities to decrease costs through carefully fitted business combinations,” said Chad Price, Executive Vice President of AEG. “This retail electric provider has operations and customers solely in Texas, has a substantially positive EBITDA and serves over 40,000 meters with annual load approximating 1,500,000 megawatt hours per year. The customer-base is principally small commercial and residential, with several hundred large commercial end-users.”
Given the big jump in natural gas prices this year (which essentially sets wholesale power rates in ERCOT) it makes sense there might be some retailers who are looking for some help.
Some smart people point out to us that Direct Energy’s recent purchase of REP Strategic Energy from Great Plains Energy for $300 million in cash, might be encouraging some smaller players to try and consolidate now before the prices get too high.
Who do you think it is?