The company’s management recommended the closure based on the unfavorable conditions in the Texas electricity market which have been exacerbated by heightened volatility in recent months.
The company’s management is currently working to transfer W Power’s customers to another retail electricity provider and settle its supply contracts and expects all of these activities to be completed by the end of August 2008.
The costs associated with the transfer of existing customers and settling outstanding supply contracts are expected to be $750,000 to $1 million.
Kris Oliver, Amen’s CFO, said: We believe that the increased complexity and volatility in the Texas electricity market that led to our decision to shut down W Power will create opportunities for our energy management and consulting business, Priority Power. We believe we can add the most value to our customers through the expertise that Priority brings to the table, without the risk and capital requirements associated with the retail electricity business.
