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Utilities raise Mass rates --
market comes to life
Large C&I shopping jumped in Massachusetts during February after
utilities raised rates in January.
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Marketers sold two-thirds of the power to large C&Is and signed
up more than 600 customers, bringing their share to 56% of the market.
They were selling to only 46%
of large C&Is in January.
C&I default rates stay close
to the market, giving marketers headroom when the market dips between
utility RFPs.
The numbers could go up still
more as uncertainty over capacity prices is dispelled.
ISO-New England junked the unpopular
locational installed capacity (LICAP) plan in favor of three-year forward
capacity auctions that would begin in January.
That may encourage longer-term
deals between marketers and customers (RT,
3/7).
It isn't clear where residential
shopping numbers are headed from February reports.
Numbers of residential shoppers
plunged, but so did customers on basic service.
The Division of Energy Resources'
expert on shopping data didn't think the lower numbers meant shopping
had declined.
It might be "noise in the
market," he told RT, or the effect of meter-reading dates.
The largest group of residential
shoppers live on the Cape where many take power under the Cape Light
Compact's aggregation program.
Cape Light's price is 2¢/kwh
higher now than Nstar's basic rate -- but power use tends to be low
at the seashore and some customers come out just for weekends.
Customers tend to be loyal to
the Compact because it offers a package of energy efficiency and renewable
products.
Dominion Retail is testing that
loyalty with an offer to Cape customers at a price 15% lower than the
Compact's through December, RT learned.
Dominion is busy these days in
other Massachusetts utility footprints.
Nstar residential customers in
Boston can save 8% and businesses 10% on an offer good through the end
of the year, Dominion told RT.
It's making offers to Western
Massachusetts Electric customers too.
Response has been good, the marketer
said. (Click here to see table)
Originally published in Restructuring
Today on April 11, 2006
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