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Opening Markets, Adding Value and Winning Customers with Innovation, Technology, and Service – a New York Perspective. Ronald M. Cerniglia Director Office of Retail Market Development New York State Public Service Commission (518) 473-0285 Ronald_Cerniglia@dps.state.ny.us.
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Opening Markets, Adding Value and Winning Customers with Innovation, Technology, and Service – a New York Perspective Ronald M. Cerniglia Director Office of Retail Market Development New York State Public Service Commission (518) 473-0285 Ronald_Cerniglia@dps.state.ny.us The National Energy Marketers Association Annual Meeting Washington, DC – April 25, 2006
Retail Access in NY is Continuing to Make Steady Progress • There are at least seven ESCOs serving residential electricity, fourteen serving non-residential electricity, eight ESCOs serving residential gas, twelve ESCOs serving non-residential gas, in every major service territory in NY. Most service territories have many more.
Retail Access in NY is Continuing to Make Steady Progress (continued) Load migration metrics have been increasing, for both electricity and natural gas
Retail Access in NY is Continuing to Make Steady Progress (Electric) • As of February 2006, a total of 570,000 customer accounts, representing the following percentage of electric customers, have migrated to an ESCO: • 55% of large commercial / industrial customers (72% of load) • 19% of small commercial / industrial customers (44% of load) • 7% of residential customers (9% of load) • An additional 19,000 customers are purchasing “green power” through green power providers • Number and Percent of Migrated Customer Accounts by Utility • NumberPercent • Orange & Rockland 67,000 31 • RG&E 81,000 23 • NYSEG 81,000 9 • NMPC 127,000 8 • Con Edison 209,000 7 • CHG&E 5,000 2
Retail Access in NY is Continuing to Make Steady Progress (Gas) • As of February 2006, a total of 413,000 customer accounts, representing the following percentage of gas customers have migrated to a marketer: • 43% of large non-residential customers (79% of load) • 17% of all non-residential customers (31% of load) • 9% of residential customers (14% of load) • Number and Percent of Migrated Customer Accounts by Utility • NumberPercent • O&R 47,000 38 • Corning 4,000 27 • RG&E 49,000 16 • KeySpan (NY) 70,000 13 • NMPC 70,000 12 • NFG 55,000 11 • CHG&E 7,000 10 • KeySpan (LI) 28,000 5 • Con Edison 77,000 7 • NYSEG 6,000 2
New York’s Wholesale Electric and Natural Gas Prices (2000 – 2005)
The Path to Our Vision for the Future • August 25, 2004 Policy Statement outlined the Commission's end state vision of retail markets. The Commission directed the utilities to file Retail Access Plans for approval, incorporating the following Commission recommendations: • Eliminate barriers to market entry by ESCOs • Statewide use of O&R Switch & Save (Power Switch) Program • Utility purchase of ESCO accounts receivable • Large Scale Retail Auctions / Outsourcing • Market Match / Market Expo / Energy Fairs • Affinity Group Aggregation • Coordinated Utility/ESCO/PSC Education and Marketing Campaign • Utility Portfolio Management and Pricing • Monitoring the Market for Anti-Competitive Behavior • Process methods for program implementation: • Utility Retail Access Plan filings followed by a collaborative process • Rate case proceedings
The Path to Our Vision for the Future (continued) • There have been a number of recent developments regarding competitive markets in New York • ESCO Statement of Principles for Marketing • NYSPSC actions on April 11th • Hourly Pricing Order • National Grid Retail Access Plan Joint Proposal • ESCO / Utility Referral Program Orders for Con Ed, National Grid, and O&R • Central Hudson has launched its Energy Switch ESCO Referral program • NYSEG implemented POR without recourse on February 1st • Coordinated Utility / ESCO/ PSC Education and Marketing Campaigns • Staff Report on the State of Competitive Energy Markets: Progress To Date and Future Opportunities
Top Ten Retail Access Issues Facing the Industry • The ESCO Community needs to be a more effective advocate on behalf of competitive markets • 9. Establish the “right” utility commodity price (e.g., default, price to beat) • 8. Remove barriers to entry and level the playing field • 7. Increase our collective competition awareness efforts to allow customers to make an informed choice