AEG Shopping 100,000-Meter ERCOT Book
February 3, 2009
AEG Affiliated Energy Group is shopping a 100,000-meter ERCOT book on behalf of a large ERCOT REP seeking to explore strategic merger, acquisition and sale opportunities.
AEG, which specializes in M&A and other energy consulting, says the REP has strong historic customer growth rates, substantially positive EBITDA of approximately $15 million on an annual basis, and serves almost 100,000 meters with load exceeding 2 million MWh annually.
According to AEG, the aggregate credit score of the REP's customer portfolio is among the highest in the industry. It is principally composed of small commercial and residential customers, with some large commercial users.
The book represents a unique opportunity for a new entrant, including an international retailer, to "establish a strong foothold in North America's most vibrant deregulated energy markets," said Chad Price, Executive Vice President of AEG. Price said that the REP constitutes, "perhaps the only full scale Texas-based REP achieving profitability during each month of 2008 despite the international financial crisis and a number of obstacles that knocked several other large REPs out of the Texas markets."
AEG is fielding inquiries on behalf of the unnamed REP on a blind-inquiry basis. AEG last fall
completed the sale of Commerce Energy's ERCOT book to Ambit Energy.