PLANO, Texas, March 21, 2003 –Texas Commercial Energy (TCE) and the Electricity Reliability Council of Texas (ERCOT) have announced a plan that provides for pre-petition payments due to ERCOT and preservation of TCE’s capitalization.
TCE and ERCOT presented the plan to the Bankruptcy Court in a hearing that took place in Corpus Christi Wednesday, March 18. The Bankruptcy Court is expected to enter a Temporary Injunction that prohibits ERCOT from taking action on TCE’s collateral posted with ERCOT, except as provided in the order, and provides for an installment payment plan that requires TCE to pay all of its pre-petition debt to ERCOT by the end of 2004.
As a result of the Order, TCE will remain compliant with ERCOT credit requirements on a going forward basis and is able to continue serving a reduced customer base while developing a plan to emerge from bankruptcy and rebuild its business.
“We appreciate the efforts of ERCOT working with TCE to resolve financial and marketplace issues with a reasonable, business solution to benefit both the Texas electricity market and its customers,” said Scott Hart, president of TCE. “By retaining our capitalization, TCE is able to continue moving ahead serving customers as we develop a successful reorganization plan.”
Many individuals worked long and hard to address the TCE bankruptcy,” said Tom Noel, ERCOT President and CEO. “I am most pleased that we met our goals of protecting the affected customers to the extent possible while addressing the financial impacts to the market.
Texas Commercial Energy is a Retail Electric Provider founded in January 2002 in response to deregulation in energy markets. Headquartered in Plano, Texas, Texas Commercial Energy serves more than 1,000 business customers throughout the State of Texas.
ERCOT keeps the lights on in Texas and is one of ten regional reliability councils in North America. As the largest control area in the United States, the organization serves seven million customers and oversees the operation of over 77,000 megawatts of generation and more than 37,000 miles of transmission lines in the state of Texas.
The primary regulatory authority for ERCOT is the Public Utility Commission of Texas. ERCOT’s members include retail consumers, investor and municipally owned electric utilities, rural electric co-ops, river authorities, independent generators, power marketers and retail electric providers.