Just Energy granted court protection from creditors after Texas storm losses

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CALGARY — Canadian natural gas and electricity retailer Just Energy Group Inc. says it has received court protection from creditors in Canada and the United States after incurring losses during severe winter storms in Texas last month.

The Toronto-based company says it expects services in all of its North American operations will continue without interruption with no affect on customer bills or employees.

It says it applied for and was granted protection under Chapter 15 of the Bankruptcy Code in the United States and under the Companies’ Creditors Arrangement Act in Canada.

Just Energy says it has obtained US$125 million of "debtor in possession" financing to ensure it continues to meet regulatory obligations in North America, including payments required by the Texas power regulator.

The company previously warned it may not be able to continue as a going concern after being forced to balance its power supply in Texas at electricity prices as high as US$9,000 per megawatt-hour after a storm knocked out power plants in the state last month.

It estimated it may have incurred losses of between C$50 million and C$315 million, adding it had asked regulators to delay payments while it disputes some of its obligations.

Just Energy markets natural gas and electricity at a retail level under several brand names in jurisdictions in Canada and the United States, including Texas, Ontario and B.C.

This report by The Canadian Press was first published March 10, 2021.

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The Canadian Press