Note 19—Commitments and Contingencies

Legal Proceedings 

On September 29, 2023, the Attorney General of the State of Illinois filed a complaint against Residents Energy in the Circuit Court of Cook County, Illinois, Chancery Division. The Complaint alleges several counts of violations of the Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/1 et seq., and the Illinois Telephone Solicitations Act, 815 ILCS 413/1 et seq., in connection with Residents Energy’s marketing practices, and seeks monetary damages to redress any resulting losses alleged to have been incurred by customers, civil penalties for certain alleged violations in the amount of $50.0 thousand per violation, and other forms of injunctive and equitable relief to prevent future violations. The Company denies these allegations and intends to vigorously defend itself against any and all claims. As of June 30, 2026, there is insufficient basis to deem any loss probable or to assess the amount of any possible loss. For the three and six months ended June 30, 2026, Resident Energy’s gross revenues from sales in Illinois were $4.6 million and  $11.6 million, respectively. For the three and six months ended June 30, 2025, Resident Energy’s gross revenues from sales in Illinois were $5.5 million and $13.6 million, respectively.

On June 1, 2026, a named plaintiff filed a putative class action complaint against IDT Energy in the Superior Court of New Jersey Law Division, Essex County. The named plaintiff, who was a customer of IDT Energy for approximately ten years, now alleges that IDT Energy has failed to disclose and has misrepresented its variable rate pricing, thereby violating its duty of good faith and fair dealing and breaching its contract with the named plaintiff. The complaint claims several causes of actions related to the foregoing. IDT Energy denies the allegations in the complaint, which it believes to be completely meritless, and plans to vigorously defend this action. Based upon the Company’s preliminary assessment of this matter, a loss based on the merits is not considered probable, nor is the amount of any potential loss estimable as of  June 30, 2026. For the three and six months ended June 30, 2026, IDT Energy’s gross revenues from sales in New Jersey were $4.8 million and  $11.6 million, respectively. For the three and six months ended June 30, 2025, IDT Energy’s gross revenues from sales in New Jersey were $14.0 million and $30.6 million, respectively.

The Company may from time to time be subject to legal proceedings that arise in the ordinary course of business. Although there can be no assurance in this regard, the Company does not expect any of those legal proceedings to have a material adverse effect on the Company’s results of operations, cash flows or financial condition.

See Note 5—Acquisitions and Discontinued Operations, for discussion related to the administration of Lumo Finland. 

Agency and Regulatory Proceedings 

From time to time, the Company receives inquiries or requests for information or materials from public utility commissions or other governmental regulatory or law enforcement agencies related to investigations under statutory or regulatory schemes, and the Company responds to those inquiries or requests. The Company cannot predict whether any of those matters will lead to claims or enforcement actions or whether the Company and the regulatory parties will enter into settlements before a formal claim is made.  

Other Commitments

Purchase Commitments

The Company had future purchase commitments of $129.9 million at June 30, 2026, of which  $127.9 million was for future purchase of electricity. The purchase commitments outstanding as of June 30, 2026 are expected to be paid as follows: 

In the three months ended  June 30, 2026, the Company purchased  $29.1 million and $6.3 million of electricity and renewable energy credits, respectively, under purchase commitments that were open during the period. In the six months ended June 30, 2026, the Company purchased $69.2 million and $3.7 million of electricity and renewable energy credits, respectively, under purchase commitments that were open during the period. In the three months ended June 30, 2025, the Company purchased $30.1 million and $4.2 million of electricity and renewable energy credits, respectively, under purchase commitments that were open during the period. In the six months ended June 30, 2025, the Company purchased $59.8 million and $4.7 million of electricity and renewable energy credits, respectively, under purchase commitments that were open during the period.

Renewable Energy Credits 

GRE must obtain a certain percentage or amount of its power supply from renewable energy sources in order to meet the requirements of renewable portfolio standards in the states in which it operates. This requirement may be met by obtaining renewable energy credits that provide evidence that electricity has been generated by a qualifying renewable facility or resource. At  June 30, 2026, GRE had commitments to purchase renewable energy credits of $2.0 million, which are reflected in the table above.

Performance Bonds and Unused Letters of Credit

GRE has performance bonds issued through a third party for certain utility companies and for the benefit of various states in order to comply with the states’ financial requirements for REPs. At June 30, 2026, GRE had aggregate performance bonds of $29.5 million outstanding and $1.0 million of unused letters of credit.  

BP Energy Company Preferred Supplier Agreement

Certain of GRE’s REPs are party to an Amended and Restated Preferred Supplier Agreement with BP, which is to be in effect through  November 30, 2026. Under the agreement, the REPs purchase electricity and natural gas at market rate plus a fee. The obligations to BP are secured by a first security interest in deposits or receivables from utilities in connection with their purchase of the REPs’ customer’s receivables, and in any cash deposits or letters of credit posted in connection with any collateral accounts with BP. The ability to purchase electricity and natural gas under this agreement is subject to satisfaction of certain conditions including the maintenance of certain covenants. At June 30, 2026, the Company was in compliance with such covenants. At June 30, 2026, restricted cash of $2.0 million and trade accounts receivable of $63.6 million were pledged to BP as collateral for the payment of trade accounts payable to BP of $24.3 million at  June 30, 2026.