State Utility Commissions Lay Competitive Framework for Delivering Cutting-Edge Energy Demand and Supply Solutions

WASHINGTON-(Business Wire)-February 16, 2009 - On the occasion of NARUC's annual Winter Committee Meetings, the National Energy Marketers Association (NEM) recognizes the significant achievements by State Public Utility Commissions across the country to ensure that consumers have competitive options for the provision of energy products and services. “Empowering consumers to select competitive energy options to control their energy budget and usage is critical during difficult economic times,” said Craig Goodman, President of NEM.

In NEM's review of the State Commissions that have instituted successful retail energy choice programs, a number of best practices have emerged. Amongst them are:

Provision of market-based pricing signals to consumers;
Utility purchase of receivable (POR) programs;
Standardized business rules and practices pertaining to utility-marketer relationships and information exchange, including provision of customer lists;
Marketer referral programs;
Marketer access to capacity and storage;
Consumer education pertaining to energy choice;
Retail choice ombudspersons at the Commissions and utilities; and
Perhaps most importantly, a transition of the utility out of the commodity merchant function.

In the states that have adopted these best practices in some combination, we see increasing consumer participation and marketer entry. Indeed, in the single Ohio service territory of Dominion East Ohio nearly 750,000 residential customers (a 73% migration rate) have enrolled in natural gas choice. Likewise, consumer choice participation rates in New York continue to climb, reaching over 1.7 million customer accounts to date.

“By implementing robust retail energy choice programs, State Commissions have laid the foundation for service and technology innovation that will be instrumental in reaching our national energy efficiency, conservation and demand response goals. Competitive energy marketers have the ingenuity and know-how to offer cutting-edge, consumer-focused 21^st century energy demand and supply solutions as our new national energy policies continue to emerge,” said Goodman.

NEM is a national, non-profit trade association representing both leading suppliers and major consumers of natural gas and electricity as well as energy-related products, services, information and advanced technologies throughout the United States, Canada and the European Union. Contact NEM's Washington, DC headquarters at (202) 333-3288 or visit its Web site at www.energymarketers.com.

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