Coral Power LLC, an affiliate of Shell Trading, Tuesday reaffirmed its interest in the Texas market, and said it plans to sell power to industrial companies and other large powers users when the market opens to competition next year.
Coral said its plans to begin selling electricity to large energy users in Texas were unaffected by Shell Energy Services Co.’s recent decision to discontinue electricity sales to residential and small commercial customers. The retail marketing unit of Shell Oil Co., Houston, pulled out of the Texas pilot program after a series of delays and computer problems at the Electric Reliability Council of Texas. The company also discontinued service in Ohio.
Shell Trading said opportunities in the industrial and large end-use market segments are developing faster than those in residential and small commercial markets. Shell remains committed to serving the important large user market segment, said Coral Pres. Debbie Wernet.
Coral, which sells natural gas to large energy users throughout the US and Canada, was licensed as an electricity marketer by the Public Utility Commission of Texas in June 2001. In preparation for the market opening, Coral said it is actively taking steps to build the generation capacity under its control, which currently totals almost 1,000 Mw in ERCOT.
The company said it has contracted with Energy Services Group, Massachusetts, Mass., for electronic communications testing and certification required by ERCOT as a prerequisite to servicing customers. ESG has similar agreements with dozens of energy companies operating in more than 75 utility territories, representing competitive access to an estimated 50 million US energy accounts, the company said.