Alliance for Retail Choice praises state regulators for supporting customer choice

OAKLAND, Calif., Feb. 4, 2004 — The Alliance for Retail Choice, a group of national retail energy suppliers, applauded state regulators who are supporting customer choice in electricity markets.

The retail electric markets are evolving rapidly to provide better prices and innovative services and technologies to customers in Texas, the Northeast and Great Lakes regions in the US.

A new KEMA, Inc. analysis concludes that over 52,000 MW of estimated peak customer electricity demand is now being competitively served. “Customers served by retail electric suppliers across the US now represent more load than the entire wholesale electric markets serving New England, New York or California, demonstrating customer choice is working and thriving,” said Julie Blunden, Executive Director of the Alliance for Retail Choice.

The retail electric market, now six years old, is showing sustained growth in several states. According to KEMA, the market increased by 12,000 MW over the past 12 months and 35,000 MW since mid-2001. The 52,000 MW represents 7 percent of the approximately 720,000 MW of total US peak summer demand.

“Customers are choosing competitive suppliers who will offer better products and services, including green power, demand response options, and energy management solutions. The competitive marketplace is creating opportunities to apply the new best practices in energy procurement and management across companies’ US operations. We congratulate all the regulators who are working for retail market design progress, ensuring customers have access to new technologies and services,” continued Ms. Blunden.

KEMA reports that the Texas market leads the country in terms of customer load migration, new entrants and choice of competitive offers. Of the 52,000 MW of customers choosing competitive suppliers nationwide in 2003, Texas accounted for approximately 17,000 MW. By comparison, Illinois, California, New York, Pennsylvania and Ohio each accounted for over 3,000 MW.

Substantial changes in retail market design are still in progress in Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania, Texas, Virginia and are under consideration in California. Roughly a third of US customer load has a choice of electricity suppliers today.

About the Alliance for Retail Choice:

The Alliance for Retail Choice advocates for continued development of successful retail energy choice markets and provides a focused voice for competitive energy retailers and their customers in selected public policy forums on the federal and state level. The Alliance brings together many of the nation’s leading retail energy suppliers, including Constellation NewEnergy, Centrica/Direct Energy, Green Mountain Energy Company, Strategic Energy and Reliant Energy. Collectively serving more than 15,000 MW of customer load, Alliance members offer competitive power supply, renewable energy, demand response products and energy management technologies. For more information, visit our website: www.allianceforretailchoice.com.

For more information about KEMA’s analysis of the retail electric market, please see

THIS PDF LINK .

For more information about the benefits to customers of competitive retail electricity markets, please see:

http://www.puc.state.tx.us/about/present/leg012604/electric.pdf
http://www.caem.org

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