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| Retail Electric Deregulation is the wild west 10 years later. |
Yesterday, I went into my favorite Walgreen's to talk to the pharmacist and to pick up prescriptions. As I went in, "Welcome to Walgreen's, Be Well" came the sound waves of a human voice from behind. Since Walgreen's started that Be Well campaign I don't even turn to look any longer, I just wave over my shoulder as I continue to walk toward the pharmacy. Always, however, I stop to thank the person at the table that wished me to be well as I leave. It turned out to be two young ladies on this trip from Green Mountain Energy. The thing about Green Mountain is that, one, I like the concept; two, I know a little something about the company and three, I like to see how much the person on the other side of the table knows about the company that they are representing. After all, this is an old marketing guy.
Later in the afternoon while the cat was sunning herself on her favorite towel on the floor where the sun comes through the glass, I got to thinking. That's always good for a couple or three days before my brain settles down to normal again. What came across my mind was the thought about the California Energy Crisis of 2000-2001. So I sat down at the computer to look it up. That led to the deregulation of retail electricity in Texas the following year and from there on, it would take a Philadelphia lawyer to sort it out. Just so happens, I know a Philadelphia lawyer. I picked up the phone and called an old friend, Dave. When he answered the phone, I ask him, "who's your electric supplier?" He shocked me when he said, "the same as yours if the bankruptcy judge okays the sale". Dave was making reference to the parent company of TXU Energy, which is now Energy Future Holdings. The Delivery System is Oncor but NextEra wants to purchase Oncor because they have invested 7 billion dollars in transmission, power generation and other operations in Texas, but the main reason is,[" they plan to pursue a once-rebuffed bid to take control of bankrupt Energy Future Holding Corp's profitable Oncor unit and that it has the balance sheet to do it." Linda Sandler, Bloomberg.net.]
To make a long story short, I have been following the money for two days now and frankly, it's blowing my mind. So at some point, I say to my self, that I will continue until chasing the money comes back on the circle. Well, it got to be so interesting that the circle came back on itself about three times over and the suspense was still keeping me going.
There are two things that just freaked me out about business practices.These are always the same.
1]When you start to see companies that have dual headquarters--one for financial and the other for operations-- your are into a good ENRON-type mystery: who made way with the biggest pile of money?
2] Then a company merges with another company and quickly retires the previous logo, but keep doing business in the just purchased companies headquarters, generally you know you have already been had as a consumer.
So, here is the shortest tale of what we know. First, a couple of facts. The largest wind farm in Texas is owned by Florida Power and Light, except, it's not called Florida Power and Light anymore. It's now NextEra Energy Resources, but still based in Juno Beach, Florida. Adding to that fact, the Seabrook Nuclear Power Plant in Seabrook, New Hampshire, is also owned by NextEra Energy Resources. There are others in nuclear, solar, wind and gas/steam generation, including the gas
/steam generating plant in Forney, Texas, just outside Dallas that uses 14 million gallons of reclaimed water from the city of Garland, Texas daily just to keep the lights on. NextEra also owns Gexa Energy. NRG also owns Cirro Energy. Bounce Energy is owned by Oncor the company being targeted by NextEra.
Now, a couple of final facts. In 2003, Houston Light and Power, or (HL&P) was forced to split into three companies; Reliant Energy, Texas Genco and CenterPoint Energy. But in February of 1999, Houston Industries had changed it's name to Reliant Energy and in 2005, NRG bought Texas Genco.
Watch closely here. In 2009 NRG had acquired the retail operations of Reliant Energy, which became RRI. In 2012, Genco was acquired by NRG, the RRIs name was retired and NRG moved in to Genco's offices.
Now, the fun part. The Brits formed a company named Green Mountain Wind Energy Center. It was developed by National Wind Power of the UK which is now part of N Power Renewables. Neither NRG or Green Mountain own Green Mountain Wind Energy Center. It is run by [LOL] NextEra Energy Resources based in, yep, Juno Beach, Florida, home of Florida Power and Lights parent, NextEra. But, it gets even more comical, Green Mountain Energy that is based here in Texas, purchases and sells the energy generated by Green Mountain Wind Energy Center. Green Mountain Energy, Texas, calls it the first commercial wind farm of Green Mountain Energy. So Green Mountain is selling energy generated by a company with Green Mountain in their name but not owned by NRG, but is run by NextEra and Green Mountain calls it their first wind farm.
The next time someone says, "welcome to Walgreen's. Be Well" to me won't be getting just the hand in a friendly wave over my shoulder. The hand that waves over my shoulder might be short three fingers and a thumb as I walk on down the isle.
Later in the afternoon while the cat was sunning herself on her favorite towel on the floor where the sun comes through the glass, I got to thinking. That's always good for a couple or three days before my brain settles down to normal again. What came across my mind was the thought about the California Energy Crisis of 2000-2001. So I sat down at the computer to look it up. That led to the deregulation of retail electricity in Texas the following year and from there on, it would take a Philadelphia lawyer to sort it out. Just so happens, I know a Philadelphia lawyer. I picked up the phone and called an old friend, Dave. When he answered the phone, I ask him, "who's your electric supplier?" He shocked me when he said, "the same as yours if the bankruptcy judge okays the sale". Dave was making reference to the parent company of TXU Energy, which is now Energy Future Holdings. The Delivery System is Oncor but NextEra wants to purchase Oncor because they have invested 7 billion dollars in transmission, power generation and other operations in Texas, but the main reason is,[" they plan to pursue a once-rebuffed bid to take control of bankrupt Energy Future Holding Corp's profitable Oncor unit and that it has the balance sheet to do it." Linda Sandler, Bloomberg.net.]
To make a long story short, I have been following the money for two days now and frankly, it's blowing my mind. So at some point, I say to my self, that I will continue until chasing the money comes back on the circle. Well, it got to be so interesting that the circle came back on itself about three times over and the suspense was still keeping me going.
There are two things that just freaked me out about business practices.These are always the same.
1]When you start to see companies that have dual headquarters--one for financial and the other for operations-- your are into a good ENRON-type mystery: who made way with the biggest pile of money?
2] Then a company merges with another company and quickly retires the previous logo, but keep doing business in the just purchased companies headquarters, generally you know you have already been had as a consumer.
So, here is the shortest tale of what we know. First, a couple of facts. The largest wind farm in Texas is owned by Florida Power and Light, except, it's not called Florida Power and Light anymore. It's now NextEra Energy Resources, but still based in Juno Beach, Florida. Adding to that fact, the Seabrook Nuclear Power Plant in Seabrook, New Hampshire, is also owned by NextEra Energy Resources. There are others in nuclear, solar, wind and gas/steam generation, including the gas
/steam generating plant in Forney, Texas, just outside Dallas that uses 14 million gallons of reclaimed water from the city of Garland, Texas daily just to keep the lights on. NextEra also owns Gexa Energy. NRG also owns Cirro Energy. Bounce Energy is owned by Oncor the company being targeted by NextEra.
Now, a couple of final facts. In 2003, Houston Light and Power, or (HL&P) was forced to split into three companies; Reliant Energy, Texas Genco and CenterPoint Energy. But in February of 1999, Houston Industries had changed it's name to Reliant Energy and in 2005, NRG bought Texas Genco.
Watch closely here. In 2009 NRG had acquired the retail operations of Reliant Energy, which became RRI. In 2012, Genco was acquired by NRG, the RRIs name was retired and NRG moved in to Genco's offices.
Now, the fun part. The Brits formed a company named Green Mountain Wind Energy Center. It was developed by National Wind Power of the UK which is now part of N Power Renewables. Neither NRG or Green Mountain own Green Mountain Wind Energy Center. It is run by [LOL] NextEra Energy Resources based in, yep, Juno Beach, Florida, home of Florida Power and Lights parent, NextEra. But, it gets even more comical, Green Mountain Energy that is based here in Texas, purchases and sells the energy generated by Green Mountain Wind Energy Center. Green Mountain Energy, Texas, calls it the first commercial wind farm of Green Mountain Energy. So Green Mountain is selling energy generated by a company with Green Mountain in their name but not owned by NRG, but is run by NextEra and Green Mountain calls it their first wind farm.
The next time someone says, "welcome to Walgreen's. Be Well" to me won't be getting just the hand in a friendly wave over my shoulder. The hand that waves over my shoulder might be short three fingers and a thumb as I walk on down the isle.
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