Entrust Energy gets approval to sell renewable energy certificates

By Sarah Lizee

Olympia, Wash., July 15 – Entrust Energy, Inc. secured court approval to sell its renewable energy certificates (RECs), according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

Entrust currently owns 213,690 RECs, which are market-based instruments that represent the property rights to the environmental, social and other non-energy attributes of renewable energy generation.

Under state renewable portfolio standard programs, RECs are issued when one megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource.

Entrust said it has determined that the interests of the estates and creditors are best served by the liquidation of the Entrust RECs.

Based on current market prices, the debtors estimate that the RECs have a market value of about $1.44 million.

“If the debtors are unable to act quickly, however, the value of the Entrust RECs may decline significantly due to, among other factors, the expiration of about 3,329 Pennsylvania RECs, valued at approximately $396,000, and general depreciation as RECs near their expiration dates,” the company said in its motion.

The sale will be effectuated on the secondary market for RECs, Entrust added.

Entrust Energy is a Houston-based retail power provider. The company filed bankruptcy on March 30 under Chapter 11 case number 21-31070.

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