December 12, 2000 Supplier Meeting Parma Aggregation Group
n Subsidiary of FirstEnergy created to provide independent energy consulting services n Retained by Parma as Aggregation Services Provider – Education Process – Certification Process – Handle the administration of RFP for Supplier Selection – Developed strategy for securing MSG capacity n Contract will run as long as the contract for Electric Generation Supplier Who is E Group?
Objective of Parma Aggregation Effort n Create savings for Members of the Aggregation Group n Have the Program up and running with power flowing in February for Residential Customers n Provide a Consumer Friendly Aggregation Effort for Residential Customers – No entrance or exit fees – No minimum stay provisions – Minimize billing disputes – Maximize bill payment options (how and where) – Easy access for members questions – Meet PUCO standards for Customer Service – Create opportunities for New Members to join the group, and existing Members to leave the group n Maintain absolute minimum financial risk to the City of Parma
Background n Election on March 7, 2000, approved garnering 70% of vote n Parma was Certified by the Public Utilities Commission effective November 13, 2000 to provide governmental aggregation services n Parma completed the required Opt-Out period for Residential Customers on November 22, 2000. n Today the Aggregation Group stands at 33,072 residential accounts n The City of Parma has applied for 129.3 MWs of MSG capacity. n The Request for Proposal was issued by The City of Parma to Certified Suppliers on December 4, 2000
Status of MSG Claim n MSG for Residential Customers was available in an amount in excess of 129.3 MWs at the time the Claim was made. n Arthur Andersen has not yet conducted an audit of the claim, although The E Group has been contacted by Arthur Andersen to start the process n A complaint has been filed by a Supplier with The PUCO asking that Parma be required to perform the Opt-Out provision again, and that Parma essentially forfeit its place in the queue for MSG. n That complaint will be on next weeks agenda at the PUCO n At this point no guarantee that Parma will obtain those rights, or that those rights will be available for February Power Flow. n If access is delayed, will likely delay start of program.
Pricing Options n Assuming MSG capacity is made available – Those initially in the group – Could be available to those that subsequently join the group if it can be secured. n Price for customers assuming neither MSG or Non-MSG is secured – In the event, MSG capacity is not made available – In the event a customer subsequently joins the group n Assuming Non-MSG capacity is made available – In the event, MSG capacity is not made available – In the event a customer subsequently joins the group.
Customer Migration n Residential customers can leave at any time without paying a switching fee. n For each Residential customer that leaves the group, the individual allocation of MSG will be returned to the First Energy pool. n Customers moving into Parma will have to be with The Illuminating Company for a minimum of one month. n Not more than quarterly, The Retail Generation Supplier will need to provide to the Aggregation Services Provider a list of customers that have left the group. The Aggregation Service Provider will obtain a customer list from the EDC, and based on a number factors, including available pricing, will conduct a Opt-Out for new residents to join the Aggregation Group. n At the end of the contract The Retail Generation Supplier will be required to provide the existing members to the Aggregation Service Provider.
Customer Service Issues n Description of billing, policy on billing disputes, policy on late payments and collection n Notification of selection as supplier of residents on behalf of Parma including terms and conditions of service. n Reporting to The E Group or Parma on status n Must have local Parma phone number or a toll free number for Members to call n Meet all requirements of Customer Service Plan. n Description of how telephone inquires will be handled, invoices will be prepared, collections for delinquent accounts will be addressed n Capability to collect an administrative fee on a per kwh basis to each member with potential to split payments to The E Group and Parma n Provide a 24-hour automated telephone message instructing callers to report any service interruptions to CEI