- ORIGINAL NEWS
A Goldman Sachs-backed electricity firm is making a play to reach more Americans’ homes
- SUMMARY
Goldman Sachs, through its private equity fund, has invested in Rhythm Energy, a Houston-based electricity provider.
Rhythm operates independently from Goldman and aims to provide affordable green energy to consumers in Texas and other deregulated states.
Critics of the energy industry allege that some retailers engage in deceptive marketing and billing practices, resulting in higher costs for customers.
Rhythm positions itself as an honest player, avoiding hidden fees and teaser rates.
However, its rates are slightly higher compared to regulated providers in Texas.
Goldman Sachs’ involvement in retail energy raises concerns about potential conflicts of interest and abuse of market power given its involvement in energy trading, generation, and retail sales.
The company maintains strict information barriers to prevent self-dealing and asserts that Rhythm operates autonomously.
However, Goldman’s influence on Rhythm’s decision-making processes and overall stewardship cannot be entirely ruled out.
Goldman Sachs’ primary focus as a private equity investor is to ensure profitability for its clients and increase the likelihood of future investments.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“Rhythm calls itself the biggest independent green energy provider in Texas.”
“Rhythm’s Texas customers paid an average rate of 18 cents per kilowatt hour in 2022, five cents per hour more than what customers of the state’s regulated providers paid, according to data from the U.S. Energy Information Administration.”
Negative
“Rhythm Energy, a Houston-based electricity provider overseen and owned by a Goldman Sachs private equity fund, has won approval from federal authorities to expand from its home market into the more than dozen states where deregulated power firms operate, CNBC has learned.”
“Rhythm, which calls itself the biggest independent green energy provider in Texas, positions itself as an honest company in a field of less scrupulous players.”