In FERC Filing, Goldman Sachs Seeks to Enter Retail Electricity Market

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In October, a private equity fund owned and controlled by Goldman Sachs applied to the Federal Energy Regulatory Commission to sell electricity on behalf of its affiliate Rhythm Energy, making the ban

king giant the first Wall Street bank to sell retail electricity contracts to households. “Competitive retail electricity suppliers solicit households to sign contracts to provide electricity, often door-to-door,” said Tyson Solcum, director of Public Citizen’s energy program. “The industry is known to frequently employ unfair and deceptive marketing and sales tactics, disproportionately impacting low-income communities, communities of color and the elderly.

“Controlling both energy generation and building out a network of households that are contractually obligated to buy your energy is ripe for consumer abuse,” said Slocum. “Lawmakers have attempted to build a firewall between banks owning and controlling non-bank businesses. While Goldman is playing a game with shell corporations, there are very clear connections between Goldman Sachs, private equity firm West Street Capital Partners, and Rhythm Energy.

 

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