CORPUS CHRISTI, Texas, March 7, 2003 — Texas Commercial Energy (TCE) announced that it has filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas-Corpus Christi.
Due to the significantly higher volatility and uncertainty in the Texas wholesale power supply market during the first part of 2003, TCE determined that it was necessary to take this action in order to preclude creditor action likely to adversely affect service to its customers.
TCE has been working diligently with the Public Utility Commission of Texas (PUCT) and Electric Reliability Council of Texas (ERCOT) over the past week to minimize customer impact created by this course of action. TCE continues to support the PUCT’S investigative efforts unveiled Tuesday in a public report filed by Parviz Adib, Division Director for Market Oversight in response to a formal inquiry that has been launched by the PUCT into price spikes
“The decision to file for bankruptcy protection was difficult, but we feel it represents the most viable approach for our business. Our objective is to move through the Chapter 11 reorganization process as quickly possible without disruption to our operations or inconvenience to our customers. We remain committed to providing a high level of service to our customers,” stated Scott Hart, president of TCE. “The company is in active discussions with leading financial lending institutions and major energy companies to provide the credit facilities necessary to support its business plan.
“While uncertainty during the past few weeks has created challenges for TCE, we are taking the steps announced today to stabilize our business, maintain the confidence of our suppliers, and enhance our ability to compete in the ERCOT market,” says Hart. “We also continue to work with the PUCT and ERCOT to understand the events of the past several weeks.”
Texas Commercial Energy is a Retail Electric Provider (REP) serving business and industrial customers throughout Texas that was launched in January 2002 in response to deregulation of Texas energy markets.