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New York State Department of Public Service Retail Energy Competition Programs and Strategies. National Energy Marketers Association Fall Leadership Roundtable and Regulatory Workshop October 24-25, 2006. Programs and Strategies. Purchase of Receivables ESCO Referral Programs Market Match - PowerPoint PPT Presentation
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New York StateDepartment of Public Service
Retail Energy CompetitionPrograms and Strategies
National Energy Marketers AssociationFall Leadership Roundtable and Regulatory Workshop
October 24-25, 2006
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Programs and Strategies
• Purchase of Receivables
• ESCO Referral Programs
• Market Match
• Market Expo
• Energy Fairs
• Utility Competition Education and Outreach Programs
• NYDPS Competition Education Program
• Coordinating NYDPS retail competition issues
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Purchase of Receivables
• The utility buys the ESCO’s receivables.
• Without recourse, at a discount.
• The discount represents the utility’s costs for administration and credit and collection expenses.
• The discount has ranged from about 1% to 3%.
• The utility uses consolidated billing.
• POR eliminates complications associated with pro-ration of partial payments and service shutoffs, and benefits both the utility and ESCOs.
• The ESCO avoids certain administrative and back-office costs.
• The ESCO receives monthly payments from the utility.
• The details are defined in the Billing Services Agreements signed by the utility and ESCOs.
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ESCO Referral Programs
• Seen as a transitional program to introduce customers to competitive choices.
• ESCO guarantees (7%) savings on utility’s variable supply price for two billing periods.
• The programs can include gas/electric service and residential and small commercial customers.
• Utility customers are offered participation by utility call center reps, bill inserts, etc.
• The customer can choose a participating ESCO or be assigned to one on a rotating basis.
• The utility initiates EDI enrollments.• Programs typically require POR and consolidated billing.• The first program was developed by O&R, now named PowerSwitch.• Residential switching at O&R has exceeded 30% and is largely attributable
to PowerSwitch.
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ESCO Referral Programs(continued)
• Orange and Rockland - PowerSwitch
• Con Edison - PowerMove
• National Grid - New Choices
• Central Hudson - EnergySwitch
• National Fuel Gas- Marketer Referral Program
• NYSEG - (in development)
• RG&E - (in development)
• KeySpan - (pending rate and merger proceeding)
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Market Match
• C&I customers can get energy quotes from ESCOs via a utility website.
• With customer authorization, the utility posts anonymous customer data (usage, etc.) accessible by ESCOs via a secure connection.
• The ESCOs post their proposals to the utility’s website – the customer’s identity remains anonymous.
• The customer retrieves proposals from the utility’s website.
• The customer can choose to contact an ESCO to discuss the proposal.
• Or the customer can authorize ESCOs to contact a designated representative.
• The ESCO must sign a confidentiality agreement that they will only use the customer’s data for this program.
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Market Expo
• C&I customers are invited to a venue with ESCOs, utility reps and NYDPS reps.
• Customers can approve in advance the release of their customer data so that ESCO can prepare proposals and discuss the proposal during the Expo.
• The utility and NYDPS reps deliver the message that ESCOs must meet NYDPS, NYISO and utility requirements and switching will not affect delivery service.
• ESCOs can make brief presentations.
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Energy Fairs
• Via a multi-media blitz, residential customers are invited to a venue where ESCOs have booths/tables to market their products.
• The utility will have on-line access so that a customers can obtain their utility account number if they want to take advantage of an ESCO offer at the fair.
• The NYDPS will provide educational materials and assist customers in learning about questions they can ask ESCOs.
• Green power providers and NYSERDA may also participate.
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Utility Competition Education and Outreach Program
• Utilities can recover competition education program expenses that have been negotiated and included in rate cases.
• Examples include:
– Market Match/Expos and Energy Fairs– Bill inserts– Newspaper, radio ads– Community/business events– Websites– Brochures– Direct mail – 3rd party mailings
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NYDPS Competition Education Program
• We have a NYDPS budget for competition education that includes:
Community leaders and business chamber mailings and events Billboards Newspaper inserts Advertorials Sponsoring/participating in energy fairs and local events Brochures Mall kiosks PowerToChooseNY.com website Statewide awareness and understanding surveys Bus wraps and bus/subway platforms
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Coordinating NYDPS retail competition issues
• Coordination within the NYDPS is facilitated by the Office of Retail Market Development.
– Processing ESCO eligibility applications– Ensuring customer protections– Spearheading competition education programs– Participating in rate cases on Staff teams– Minimizing barriers to entry and maintaining a level playing field– Solving infrastructure problems and resolving disputes– Modifying the Uniform Business Practices and EDI transactions– Developing affinity group aggregation opportunities– Exploring retail auctions
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Near and Long-term Challenges
• Near-term: Re-examining utility price transparency and portfolio management issues (current proceeding, Case 06-M-1017)
• ??
• ??
• Long-term: Solving POLR and exiting the merchant function
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Contact Info
• For more info, please contact me at
• Benjamin Stein, Manager
Market Operation and Design
Office of Retail Market Development
New York State Department of Public Service
3 Empire State Plaza
Albany, NY 12211
• 518 486 2478