A Case Study - Retail Electric Provider Bankruptcies
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Words: 1938
Pages: 7
(approximately 235 words/page)
Pages: 7
(approximately 235 words/page)
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A Case Study - Retail Electric Provider Bankruptcies
Texas Commercial Energy (the "Company" or "TCE") filed for bankruptcy
protection on March 6, 2003 in the Southern District of Texas following a sudden and
dramatic rise in the price of wholesale electricity. TCE is a Retail Electric Provider
("REP") serving commercial and light industrial customers in the region of Texas
administered by the Electric Reliability Council of Texas ("ERCOT"). TCE acquires
electricity on the wholesale market and then …
showed first 75 words of 1938 total
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showed first 75 words of 1938 total
showed last 75 words of 1938 total
…start-up companies to become involved in the ERCOT market and to further the goal of deregulation of the retail power market, there is certainly the risk that a company will become vulnerable to market fluctuations if it lacks the financial ability to become fully hedged. Letters of credit are one way to provide such credit support and can be used effectively in a bankruptcy case to provide additional financing and equitytype capital for a debtor.
…start-up companies to become involved in the ERCOT market and to further the goal of deregulation of the retail power market, there is certainly the risk that a company will become vulnerable to market fluctuations if it lacks the financial ability to become fully hedged. Letters of credit are one way to provide such credit support and can be used effectively in a bankruptcy case to provide additional financing and equitytype capital for a debtor.
