I wrote an article about the “Glacial Energy Scam” claiming it was “not a scam” but perhaps I spoke too soon. On Tuesday the 9th of January the Public Utility Commission of Texas (PUCT) recommended revoking the company’s license. The PUCT is now reviewing Glacial Energy to see if it is necessary to revoke its Retail Electric Provider’s (REP) license.
The company is being fined over $235,000 for over-billing its customers. To make matters worse, Glacial Energy’s owner, Gary Mole, also owned Franklin Power Company. It seems harmless to go from owning one energy company to another but not in this case. According to TXU Delivery Company and CenterPoint, Franklin Power Company failed to pay its bills which led to its license being revoked in 2006.
I don’t know if the PUCT had any knowledge about Mole’s ownership of the Franklin Power Company. This makes me question the validity of the process to get licensed because the PUCT has to approve REPs before they can sell electricity in Texas.
Another crazy thing about Glacial Energy is the lawsuit in a Dallas federal court about its involvement in financing “blood diamonds.” The case also includes charges of “racketeering” and “money laundering” to help fund the mining operation in Africa.
So was I right about claiming Glacial Energy was not a scam? If the allegations hold up in court, it looks like I was wrong. To barrow the old cliché; “you’re innocent until proven guilty” gives me comfort that maybe this is all wrong but it does not soften the blow to my confidence in the PUCT.
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