Entrust Energy Files for Bankruptcy in Texas Amid Power Fallout
(Bloomberg) -- Entrust Energy Inc. became the latest power retailer to file for bankruptcy after February’s winter storm in Texas sent electricity prices soaring.
The company listed assets of $100 million to $500 million and liabilities of $50 million to $100 million, according to a Chapter 11 petition filed in the Southern District of Texas on Tuesday.
Entrust says it has a $270 million disputed claim with the Electric Reliability Council of Texas, the operator of the state’s power grid, related to supply obligations. Other claims include $1.6 million from JPMorgan Chase & Co. for a Paycheck Protection Program loan.
Houston-based Entrust follows Brazos Electric Power Cooperative Inc., the state’s largest power generation and transmission cooperative, and power retailer Griddy Energy LLC into bankruptcy after February’s catastrophic storm crippled the electricity grid, sending wholesale electricity prices to $9,000 a megawatt-hour and leaving millions without power for days. More than 100 people died in the crisis.
Ercot barred Entrust from Texas’s power market after it failed to make payments stemming from the storm. At the time, Ercot said the company owed $234 million to generators and others.
Entrust’s bankruptcy lawyer didn’t immediately respond to an email and phone call seeking comment. The company didn’t immediately respond to a message seeking comment.
Entrust provides electricity for more than 170,000 customers across eight states, according to its website. Rhythm, a renewable provider, said earlier this month that it had acquired 40,000 residential and 10,000 commercial customers from Entrust in Texas.
The case is Entrust Energy Inc., 21-31070, Southern District of Texas (Houston).
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