ERCOT Pulls the Plug on Electric Retailer Abacus
Dallas-based electric retailer, Abacus, is filing bankruptcy after previously defaulting on its financial obligations to the Texas power grid—ERCOT. Abacus had been seeking to develop an installment plan for the debt with the intention of re-entering the retail market, but ERCOT and TDSP recently turned down the proposal.
Executive vice president Mark Angell attributed the company’s financial debacle on steep spikes in wholesale power prices that hit Texas in February during the extended cold snap that shutdown dozens of power plants. Angell stated the company’s debt of $750,000 occurred when owner, Omer Varol, a German businessman, failed to quickly raise the funds needed to hedge more of the company’s power purchases.
“It was like playing Russian Roulette with a full revolver,” Angell said.
As a result of that gamble, 7,743 customers were shifted to other electric companies through asset sales.
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