On the third greatest television show of all time (sorry Rolling Stone), one of Texas' most famous fictional football players once said, "When all the scared rats are leaving a sinking market, that's when a real entrepreneur steps in -- a true visionary."
If that's the case, then the startup renewable energy retail reseller Arcadia may be a true visionary. Even as energy startups servicing customers throughout the great state of Texas are forced to throw in the towel, the Washington-based, consumer-focused renewable energy power provider (based on renewable energy certificates purchased on the open market), is making an acquisition to enter the Texas market.
The company is buying Real Simple Energy, which not only marks the company's availability in all 50 states, but gives Real Simple Energy customers access to both wind and solar power generating projects. The company said it will leverage Real Simple Energy's platform and expertise to secure the best rates for members, monitor for better savings, and provide a smarter yet simpler energy experience.
"Recent events in the Texas market prove that customers shouldn’t be exposed to wholesale or variable rates, and want an energy advocate to protect them,” said Kiran Bhatraju, CEO and Founder of Arcadia. “Both Arcadia and Real Simple Energy recognize the challenges Texas homeowners and renters have historically faced in the energy buying process, and we remain committed to removing these confusing barriers.”
Texans have consistently paid more for power than consumers that buy their energy from regulated market participants thanks to the state's disastrously deregulated power markets. The combined companies are pitching fixed rate contracts to Texas consumers that won't be vulnerable to bill spikes, but will offer average savings above the flat rates regulated utilities offer.
"The deregulated energy industry, especially in Texas, has underserved customers and as a result, most customers overpay for electricity and receive poor customer service. Using technology, we are helping customers realize the promise of deregulation and always get the best fixed rates available," said Trent Crow, CEO of Real Simple Energy, in a statement. “As industry veterans, joining forces with Arcadia will allow us to get better deals for customers and enhance our customer experience. We manage 100% of the energy experience and become a customer’s independent agent and advocate so they never have to worry about their electricity bill again."
The deal is Arcadia's first acquisition and follows the company's launch of a community solar program all the way across the country in the great state of Maine.