Do Ohio Energy Providers Go Bust?
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What Happens To Customers When Energy Providers Fail
February's big Texas Freeze sent energy prices in the Lone Star state sky high. So high that Entrust Energy soon failed to pay what it owed in the electricity market for Ohio. The news hit Entrust customers in three utility service territories. Since then, some customers worry they will be left in the dark if their energy provider fails. For that reason, we're going to shine light on what happens when Ohio energy providers go bust. We'll break down what happens to a supplier and what their customers can do.
What’s Happening To Entrust Energy?
After the storm, Entrust owed $234 million to power companies in Texas. Unable to pay, ERCOT revoked the company's right to sell electricity in Texas. These high costs then forced Entrust Energy to default on its February 23 payments in the PJM energy market. As a result, Entrust told PUCO it could not supply its Ohio customers. The company then shut down and closed its doors in Ohio and other states, as well.
What Will Happen To Entrust Energy Customers?
A few companies are still struggling in Texas. However, most Ohio energy providers are stable. The current default case affects just 3,500 customers in these service areas:
- Dayton Power and Light
- Duke Energy
- AEP Ohio -- which reports only Entrust 877 customers in their area.
If you’re an Entrust customer wondering what to do, just relax. Ohio law gives PUCO the job of getting power to your home without interruption. As of March 10, PUCO announced that is switching all Entrust customers to their local utility's standard service plan. Customers should get a notice about details in the mail in just a few days.
Will My Ohio Energy Provider Fail?
So, will your supplier go out of business? Probably not. However, here's what you should expect if by some chance your electric company defaults.
- As with Entrust, PUCO handles transferring customers to “the provider of last resort” -- or your utility. PUCO keeps the transfer from Ohio energy providers to utilities seamless.
- In case of a default, watch your mail for a notice detailing how your utility is handling your account.
- As soon as you learn of the transfer, you should shop for the best Ohio electricity rates immediately. This way you can lock in the best deal for your household.
Keep Calm and Power On
With no interruption of service, your home will stay powered no matter what happens to your energy provider. Use this as a great opportunity to shop around for electricity providers that suit your home and your needs. You may just end up saving on your bills. For providers, tips, tricks, and ways to save on your power, check out more at www.ohenergyratings.com.