OTCPK:JENGQ - Post by User
Comment by
BayStreetRolleron Mar 24, 2021 12:06pm
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Post# 32866662
RE:RE:RE:JE OTC March 23rd
RE:RE:RE:JE OTC March 23rdI don't ever see that short squeeze coming. JE won't be getting back any of that $250 - $315 million that they owe. Same goes for all other energy retailers in Texas. That would be the just like changing the rules of the game while be played. Energy retailers knew the supply/demand risks and what could happen if a weather event ever happened (heat waves, cold snaps, etc.). ERCOT would directly communicate with retailers when these events would be upcoming and encourage their customers to conserve energy.
When customers sign up for a Fixed rate (just like JE offers), its an insurance policy against these rates that could happen during weather events. JE is exposed and taking on that risk - but also getting paid because they are marking up that energy on their rack rate.
We will start to see the smaller books be sold off/go out of business and consolidation in the TX retail energy market. Not sure there will be a buyer for JE - not sure anyone would want to touch it frankly.