Crius Energy

Market position

Crius Energy was described as one of the largest independent energy suppliers in the United States and a market leader in the deregulated retail energy sector. The U.S. Gas & Electric acquisition, which added service to more than 375,000 customers in Connecticut and 10 other states, was reported to push the company into the top 10 non-utility providers of electricity and natural gas nationally. Its acquisition by Vistra was expected to move Vistra ahead of NRG as the largest seller of residential electricity services in the country. Comparable companies include NRG Energy, TXU Energy, Just Energy, AEP Energy, Ambit Energy, Reliant Energy, Direct Energy and Spark Energy.

The company differentiates through its family-of-brands structure and white-label partnerships with telecommunications companies, which let it use partners' established brand recognition in markets where retail energy suppliers typically have low brand awareness. Its renewable positioning — buying wholesale power from wind and solar sources and offering it below traditional provider rates — and its vertically integrated solar capability spanning lead generation, sales, financing, installation and monitoring were also cited as distinguishing features.

Technology

Crius operated multiple retail energy businesses each with its own brand and systems, and management identified consolidating them into a single core set of data and operational systems — including a customer information warehouse and a unified view of supply procurement and portfolio management — as a key supply chain challenge spanning energy procurement through billing. On the solar side, assets acquired from SunEdison included a proprietary residential solar lead-generation platform, which combined with the Verengo installation business gave the company capabilities from lead through installation, maintenance and monitoring.

Go-to-market

The company used a multi-channel sales approach spanning exclusive partnerships, direct-to-consumer channels and broker marketing networks, organized around a family-of-brands strategy. It initially built its business through thousands of independent agents selling service on commission, and later experimented with other channels including door-to-door sales as marketing calls to homes drew regulatory and legislative scrutiny. A distinguishing channel was a white-label model with telecommunications partners — Cincinnati Bell Energy (2011, with Cincinnati Bell), FairPoint Energy (with FairPoint Communications in Maine and New Hampshire) and FTR Energy Services (2012, with Frontier Communications) — in which Crius operates the retail energy business and supplies the end user while leveraging the partner's brand recognition. Solar was sold through an exclusive reseller agreement with SolarCity beginning in 2013, initially via Viridian Energy and later expanded to FTR, and through the standalone Citra Solar brand.

Primarily residential and smaller commercial customers in deregulated US energy markets, with a secondary and growing focus on commercial and industrial accounts. Customers include homeowners seeking renewable or below-utility-rate supply options and buyers of residential solar.

Geography

Headquartered in Norwalk, Connecticut, having relocated from Stamford. Coverage expanded from 12 northern states and the District of Columbia at the 2012 merger to 19 states and the District of Columbia, with sources also citing 20 domestic markets and activity in 23 markets across the US and Australia. Named states and territories include Connecticut, New York, Ohio, Indiana, Maine, New Hampshire and the District of Columbia. After 2018 restructuring the company consolidated seven offices into three, in Connecticut, Florida and Texas.

History

Viridian Energy was founded in 2009 in Stamford, Connecticut by Michael Fallquist and reached more than 200,000 electricity and natural gas customers across seven states within three years. Public Power was founded in 2008 and Regional Energy Holdings in 2009. In July 2012, Regional Energy Holdings and Public Power merged into Crius Energy, a newly created holding company that listed on the Toronto Stock Exchange via a simultaneous IPO, with Fallquist as CEO. Crius launched FTR Energy Services with Frontier Communications in November 2012, signed an exclusive reseller agreement with SolarCity in 2013, and launched the standalone solar brand Citra Solar in April 2014. It acquired assets from SunEdison including a residential solar lead-generation platform in 2016, bankrupt California solar installer Verengo for $11.9 million in September 2016, and U.S. Gas & Electric for $178 million in 2017. In 2018 the company cut its workforce from about 500 to fewer than 230 employees and consolidated seven offices to three in Connecticut, Florida and Texas. Vistra Energy agreed to acquire Crius in February 2019 and closed the transaction on July 15, 2019, after unitholder approval on March 28, 2019 and FERC approval on July 8, 2019.

Risks & controversies

In 2018 Crius agreed to pay $18.5 million to settle litigation in Connecticut federal court over its billing practices; the company disputed the plaintiffs' claims but agreed to instruct its agents not to make unsubstantiated claims about savings versus utility-supplied power. Debt taken on to finance the $178 million U.S. Gas & Electric acquisition drew pressure from a Houston investment firm, prompting commitments to cut costs, wind down a solar subsidiary and shed offices. The company cut more than 270 jobs in 2018, reducing its workforce below levels agreed with the state of Connecticut, which in 2016 had extended more than $10 million in incentives tied to adding 225 workers when the company moved its headquarters from Stamford to Norwalk. Its historic reliance on independent commission agents and outbound marketing calls also drew scrutiny from federal lawmakers and regulators.