Reliant Picks Up NJ Resources Contracts
Reliant Energy Retail Inc., announced last week the purchase of
all New Jersey Natural Energy's (NJNE) commercial gas contracts.
The actual agreement was signed last week, NJNE said, and customer
accounts are already switching to Reliant. Neither the number of
purchased accounts nor the financial terms of the transaction were
disclosed. The two companies said the transition will be seamless.
Reliant Energy's retail group said it intends to integrate the
business into its existing New Jersey natural gas business, which
maintains a sales office in Edison, NJ. A company spokesman said
Reliant is one of the largest suppliers to commercial customers in
the state, serving in all New Jersey LDC service territories. "This
acquisition fits with our strategy of growing our mid-market retail
business and strengthening our position as one of the leading
retail marketers in New Jersey," said Rollie Bohall, senior vice
president, commercial and industrial markets.
The Houston-based company has retail operations in the upper
Midwest, the upper Atlantic region and in Georgia. The NJNE
purchase represents the third time Reliant has purchased retail
assets from another energy company this year. In March, Reliant
bought certain small industrial accounts from National Energy
Management LLC and Koch Midstream Services Co (see NGI, March 8).
It also purchased Com/Energy's retail marketing assets in late
Only NJNE's commercial customers are affected by this agreement.
NJNE, the retail subsidiary of New Jersey Resources, will continue
providing commodity service to its industrial customers and over
15,000 residential customers in the state. The sale marks the first
time NJNE has ever sold a part of its customer base, the company
"This move is part of NJNE's strategic shift away from providing
a commodity-only service to commercial customers," Laurence M.
Downes, chairman and CEO of NJR said. "Reliant Energy will provide
these customers with commodity service, and we will focus on
developing new services for commercial customers, including
emerging distributed generation technologies like fuel cells and
microturbines. In addition to providing innovative products and
services to commercial customers, we are also developing these new
services for our residential customers."
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