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NRG Affiliate’s Bid to Pursue Ector Plant Insider Claims Rejected

Aug. 17, 2022, 7:01 PM

Ector County Energy Center LLC’s largest unsecured creditor failed in its bid to pursue claims that the bankrupt Texas power plant’s insiders engaged in fraudulent asset transfers.

As an individual creditor, Direct Energy Business Marketing LLC, which is an affiliate of NRG Energy, lacked standing to pursue those claims on behalf of Ector’s Chapter 11 estate, US Bankruptcy Judge John Dorsey ruled during a Wednesday hearing.

Direct Energy is suing Ector and Ector’s owner, Invenergy, for about $400 million over the power plant’s alleged failure to uphold a derivatives contract tied to power production, according to court records. Invenergy and ...