ACR Energy Partners, effectively Revel’s sole power supplier, on Friday asked a federal judge for permission “to terminate energy services to the Revel.”
In court papers the company said it can no longer power the closed resort at steeply discounted rates, telling Chief U.S. Bankruptcy Judge Gloria Burns that “as the months have dragged on, the financial drain to ACR Energy has led to defaults to its creditors, and the increasing likelihood of its own bankruptcy proceeding.”
It’s not clear if there’s another energy supplier on hand to power the Revel complex, which could be ravaged by fungus if the climate-control system there is shut off.
Friday’s filing by ACR, whose sole customer is Revel, brought to a head a simmering debate over how much ACR should be paid for services provided during Revel’s Chapter 11 case.
ACR, which has a 20-year energy contract with Revel, wants to be repaid, with interest, for helping build Revel’s power plant with $118.6 million in municipal bonds and a roughly $40 million equity investment. Revel says financing fees from construction of the plant shouldn’t be included in the bill for energy used by the bankrupt property.
ACR is a subsidiary of a joint venture between DCO Energy LLC and Marina Energy LLC. Marina is part of Folsom-based South Jersey Industries.