On May 10, 2022, Ohio based energy supplier Talen Energy Marketing, LLC filed for chapter 11 bankruptcy. Talen is a PUCO-certified competitive retail electric service company providing electric supply to customers.
Energy Choice Matters: Retail Supplier Declares Bankruptcy, Will Wind Down Substantially All Of Retail Business
As reported by energy trade publication energychoicematters.com, “Talen Energy Supply, LLC and various subsidiaries, including Talen Energy Retail LLC, filed voluntary Chapter 11 petitions in federal bankruptcy court, stating that, "unpredictable and unlikely weather patterns and commodity/fuel pricing have proved to be a strong headwind for the Debtors," which have created liquidity challenges.”
What happens when a retail supplier defaults or goes bankrupt?
A retail supplier “defaulting” means it has been unable pay its wholesale suppliers or transmission providers and is therefore unable to provide service to its retail customers.
PUCO regulations are designed to protect consumers, so their service remains uninterrupted. Ohio law requires electric and natural gas distribution utilities to serve as a “provider of last resort” if a competitive supplier is no longer able to provide service for any reason.
Customers of Talen may soon receive a notice from their distribution utility that they have been placed on their electric utility’s “standard service offer”. These represent the utility’s default rates for electricity and may be different rates than those offered by Talen.
Talen’s customers that are reassigned to their local utility are eligible to enroll with a different competitive supplier. Consumers can review competitive offers from other retail providers at the PUCO’s Energy Choice Ohio website at https://energychoice.ohio.gov.
Customers with questions or concerns should contact their local electric or natural gas utility. The PUCO Call Center is available to assist consumers with questions, complaints or general assistance navigating their energy choice options. Consumers can write the PUCO online, by mail or call (800) 686-PUCO (7826).