Vistra Energy, a retail power provider to 2.9 million customers, announced to acquire Crius Energy Trust
Vistra purchased Crius for about US$ 328 million and will assume US$ 108 million of that companyâ€™s net debt. Crius, a multi-level energy seller that provides electricity including solar power through a number of brands, has about 1 million customers. DNV GL confirmed to Greentech Media that the acquisition makes Vistra the largest residential retail electric power provider in the U.S. based on number of customers. Vistra President and CEO Curt Morgan said the Crius portfolio has â€œa high degree of overlap with Vistra's generation fleet and complements Vistra's existing municipal aggregation and large commercial and industrial portfolio in the Midwest and Northeast markets.â€
The move follows on Vistraâ€™s attempts to guard against the instability inherent to competitive markets while expanding its footprint, said Daniel Finn-Foley, a senior energy storage analyst at energy research and consulting group Wood Mackenzie Power & Renewables, who formerly worked as a senior consultant in retail energy markets at DNV GL. â€œAfter emerging from bankruptcy in 2016, Vistraâ€™s strategy has seemed to focus heavily on diversifying its holdings and hedging against the wholesale market volatility that drove its predecessor toward unsustainability in 2014,â€ he said. â€œIt has diversified its generation fuel mix through the Upton 2 solar system, and broadened its geographic footprint following a merger with Dynegy, a kindred spirit company applying similar approaches to risk following its own bankruptcy.â€
In 2016, Vistra spun off bankrupt Energy Future Holdings Corp. under a different name, along with a couple of subsidiaries. Itâ€™s the parent company for TXU Energy, a retail electricity provider in Texas; Homefield Energy, a retail supplier affiliated with Dynegy; and Luminant, a power generation business based in Texas with a portfolio made up of natural gas, coal, solar and nuclear. The Crius acquisition adds 11.6 terawatt-hours of load to Vistraâ€™s portfolio, which the company said would improve its generation-to-load profile. Vistraâ€™s generation capacity currently is around 41 gigawatts. Although acquisition deal still awaits approval from two-thirds of Criusâ€™ unitholders, as well as regulatory approvals, the acquisition will likely close in Q2 2019.
Subscribe to our newsletter to get notification about new updates,information, discount, etc..