ACR Energy Partners Agrees To Supply Power To The Revel Casino
ACR Energy Partners were responsible for being the sole provider who supplied the Revel Casino in Atlantic City with power. The Revel Casino was ACR Energy Partners biggest client and paid the casino close to $3 million a month for providing power that enabled the casino to run its operations smoothly.
Once the Revel casino went bankrupt and the casino was put up for sale, power supply became a major cause for contention as prospective owners were not willing to shell out millions of dollars in overhead power supply costs. When Florida real estate developer Glenn Straub finally bought the Revel Casino, he immediately informed ACR Energy that their partnership with the Revel Casino would be terminated and he would find an alternate supply of power.
ACR Energy Partners did not take too kindly to the notification and decided to immediately cut their power supply to the Revel casino. As a result, the casino immediately faced a crisis due to the lack of electricity and water thereby raising safety concerns for the casino and the individuals who visited the casino for work. Straub was also informed by Atlantic City officials to resolve the power supply issue at the earliest as a lack of power put both the city and the casino at risk as the fire department cited safety hazards due to a lack of water.
The City decided to fine Straub $5,000 for every day the casino had no power. Straub was adamant and did not want to collaborate with ACR Energy Partners and decided to bring in temporary generators to restore power to the Revel casino. ACR Energy Partners filed a case against Straub stating that he would be using equipment belonging to them to use his temporary generators and managed to get U.S. District Judge Jerome B Simandle to issue a temporary restriction preventing Straub from using an alternative means of power. The judge requested both parties to find common ground and reach a mutual agreement instead of going back and forth and increasing the risk factor at the casino.
In a statement, U.S. District Judge Jerome B Simandle said
The parties have said that they are interested in exploring with each other whether there is any meeting ground for a long-term agreement or a buyout
The advice appears to have worked as ACR Energy Partners have agreed to turn on the power supply to the Revel Casino but have yet to disclose the terms of the agreement with Straub.
