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Electric Restructuring- Experience in other states.

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Presentation on theme: "Electric Restructuring- Experience in other states."— Presentation transcript:

1 Electric Restructuring- Experience in other states

2 Shopping Credits vs. Delivery Service Tariffs b Shopping Credit approach starts from retail price b When an ESP (Energy Service Provider) attracts a retail customer, the customer receives a “shopping credit” on his bill for each kWh that is now supplied by the ESP rather than the UDC (Utility Distribution Co)

3 PA Shopping Credits b Consciously set above the wholesale price of electricity b Difference between credit and shopping credit is the retail margin b Retail margin can be shared with customers and used to cover retailing costs b Choice started 1/1/99

4 CA Experience b Unbundled Delivery Services b Power Exchange (PX) similar to a poolco b Customer have direct access to the wholesale market price b Choice started 4/1/98

5 Massachusetts b Unbundled “standard offer” generation service available from the distribution company b Choice started 4/1/98

6 Customers Switching to ESPs in PA (Percentage of Load Served by ESPs) 1/7/00 (Choice started 1/1/99) UDCResCom.Ind. 1999 Shop. Cr. (cts/ kWH) PECO17.5%39.15%58.7%5.65 PP&L2.833.342.14.26 GPU Energy 6.758.267.34.53 Duquesne13.641.313.44.75 Allegheny1.520.121.1NA

7 Retail Customers Switching to ESPs in CA (as of December 15, 1999) Retail choice started 4/1/98 Customer Type % of Demand % of Customers Residential2.0%1.7% Commercial (<20 kW) 4.23.4 Commercial (20<kW<500) 14.66.5 Industrial (>500 kW) 32.020.1

8 Retail Customer Switching to ESPs in MA (as of Nov. 1999) Retail choice started 4/1/98 Customer Type % of Retail Sales Residential0.17% Small Commercial 1.69 Medium Commercial 5.0 Large Commercial 20.7


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