Direct Energy - History

History

Direct Energy was founded in Toronto in 1986, as a competitive energy retailer. In 2000, the company was acquired by Centrica, the UK-based parent of British energy retailer British Gas.

From 2000 onwards, Direct Energy grew rapidly through acquisition. These acquisitions included Energy America (2000), Enbridge Home Services (2002), AEP’s Texas retail operations (Central Power and Light and West Texas Utility), the regulated retail operations of ATCO Gas and ATCO Electric in Alberta, Entergy Solutions Ltd.’s ERCOT customer base and Strategic Energy (2008).

In the area of energy services, Direct Energy acquired Luced Heating Contractors, BASE Controls Ltd., MABE Canada Inc.’s in-home service repair division, and the Residential Services Group.

In 2010, Direct Energy acquired Clockwork Home Services making Direct Energy the largest energy and home services retailer in North America . Clockwork has three brands:, One Hour Air Conditioning & Heating, Benjamin Franklin Plumbing and Mister Sparky, which specialize in plumbing, electrical and air-conditioning and heating and services.

Direct Energy acquired a number of upstream assets, including gas reserves and power generation facilities. These include: Quintana Minerals Resources, Bastrop Energy Center, Frontera Energy Center, Paris Energy Center, and Rockyview Energy Inc. Direct Energy has entered into long-term power purchase agreements for 813 MW of electricity from five wind farms in Texas.

Direct Energy owns and operates approximately 4,600 natural gas wells in Alberta, most recently acquiring natural gas assets from Suncor Energy and Shell Canada.

The company ’s new strategy calls for increased investment in North America, specifically to grow its upstream asset cover to 35-40%; it also plans to grow its downstream businesses in its core markets of Texas, US North East and Canada.

Chris Weston became President & CEO of Direct Energy on July 1, 2009 following the retirement of Deryk King.

Direct Energy announced in January 2012 that it will move its corporate headquarters from Toronto to Houston within the next 12 to 18 months. The headquarters will be in the Greenway Plaza location where the company's residential energy and upstream business are now based.

In 2012, Iberdrola USA sold its energy services companies, Energetix and NYSEG Solutions, to Direct Energy.