Monday July 3 2006


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Marketers see hope for
Alberta's new market

Alberta's stalled small-customer retail market may improve when a new plan for default rates takes effect.
The Future of ABC Channels in Texas

Restructuring Today Audio conference, July 21, 12:00 - 1:30 PM CDT

What does Texas' impending Jan 1 move to full competition mean for hundreds of ABCs? Restructuring Today has put together an ideal panel to address this question and more, including:

• David Wiers, Texas Electricity Professionals Association & Choice! Energy Services

• Jeff Nottingham, Cirro Energy Services & Dallas Electric Club

• John Elder, Legacy Energy Management Solutions

Click here for details         The regulated rate option (RRO) is morphing into a monthly rate based 80% on hedged supplies -- comparable to the default service portfolios of laddered contracts some US states require -- and 20% on the Alberta wholesale market.
        Utilities are to build up gradually supply bought on the market -- moving to 40% in July 2007, 60% in 2008, 80% in 2009 and 100% in 2010.
        Rates had changed quarterly -- or less frequently -- over the past year when 100% of supply was hedged thus leaving marketers little headroom.
        The province was to end the RRO and switch to 100% market-based rates but the Energy Ministry changed its mind (RT, 6/13) because few small customers (250,000 kwh/year) had shopped.
        Like other opened retail markets, C&I shopping had boomed with 70% of large customers (90% of load) and 37% of small commercial customers (55% of their load) buying from 20 marketers.
        Only 7% of small customers were shopping with three marketers -- Energy Savings (ESIF), Direct Energy (Centrica) and Enmax -- serving them.
        The Energy Ministry expects the part-hedged, part-market rate to be 25-50% less volatile than a purely market rate (RT, 6/14/05).
        The monthly RRO rate is fairly transparent and gives small customers another three years to learn to shop.
        Marketers have coped with this year's low rates -- based on power deals made in 2004 -- by offering long-term contracts at fixed prices and dual fuel (power and gas) deals.
        Enmax has been selling competitive power by giving customers the choice of matching the RRO or paying C6¢/kwh on a one-year contract.
        The new rates give marketers more headroom -- rising 35% to C7.553¢/kwh at Calgary muni Enmax, for example.
        Enmax's rate since January has been C5.594¢.
        Originally published in Restructuring Today on June 29, 2006

Broker seeks same deal NOPEC
had gotten in Ohio

Buckeye Energy Brokers complained to the Ohio PUC it was refused the same special deal FirstEnergy Solutions gave 400,000+ customers in the Northeast Ohio Public Energy Council (NOPEC) power pool (RT, 11/7).
Market monitoring:
Is the focus changing?

Restructuring Today audio conference
July 28, 12-1:30 CDT

 Market monitors are actively watching over power markets around the land. What are they doing? How are they monitoring markets?

Find out from these top monitors:

• Keith Casey, California ISO

• Parviz Adib, Public Utility Commission of Texas

• David Patton, Midwest ISO

• William Hederman, ran FERC's Office of Market Oversight & Investigations for years

• William Hogan, Harvard University

Click here for details         The FirstEnergy marketing affiliate stepped in after NOPEC's supplier exercised a clause that allowed it to walk away for adverse regulatory actions (RT, 10/27).
        FirstEnergy Solutions offered NOPEC customers -- bounced back to utility supply -- discounts off utility rates under the rate certainty plan that took effect in January (RT, 12/20).
        Buckeye wrote FirstEnergy's CEO asking for the same 5% discount for citizens and 1% discount for businesses in five cities with governmental aggregations, it told the PUC.
        Buckeye wants as well a reimbursement for administration expenses just as NOPEC had gotten.
        Buckeye instead got a letter back from FirstEnergy Solutions explaining the firm wasn't offering such deals anymore, the broker told regulators.
        That deal had been offered by the marketing affiliate, not FirstEnergy's utility.
        The broker thinks nevertheless that FirstEnergy violated Ohio law by offering NOPEC a deal that it isn't making available to other pooled customers.
        The cheaper rates NOPEC communities get, Buckeye alleged, give them an "unreasonable preference and advantage" in attracting new businesses and residents over the communities Buckeye works for.
        Since Buckeye and NOPEC compete, the broker pointed out, it gives "preferential treatment to NOPEC to the disadvantage of Buckeye."
        Buckeye wants the PUC to schedule a hearing and order FirstEnergy to give its customers the same deal. It wants restitution for its customers too.
        The PUC ordered FirstEnergy to answer the complaint within 20 days.
        Originally published in Restructuring Today on June 29, 2006

Send Your Feedback

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CONFERENCE LINKS

The Future of ABC Channels in Texas
When: 07/21/06 , 12:00 PM - 1:30 PM CDT
Where: Your home, work or cell phone
www.restructuringtoday.com/conferences/texasabc.html

Market monitoring: Is the focus changing?
When: 07/28/06 , 12:00 PM - 1:30 PM CDT
Where: Your home, work or cell phone
 http://www.restructuringtoday.com/conferences/monitor.html

EUCI's Western Resource Adequacy
When: 07/17/06 - 07/18/06, 7:00 AM - 12:00 PM
Where: Westin Horton Plaza -- San Diego, CA
http://www.euci.com

IQPC's 3rd Annual Broadband Over Powerline 2006
 When:  July 25-26, 2006
Where:  Dallas, Texas
www.iqpc.com/NA-2741/BPLT

EUCI's Using Shadow Settlement to Improve Profits in LMP Markets
When: 07/25/06 - 07/26/06, 8:00 AM - 5:00 PM
Where: Stanley Hotel -- Estes Park, CO
http://www.euci.com

EUCI's Preparing for New CAISO MRTU Market
When: 07/27/06 , 8:00 AM - 5:00 PM
Where: Stanley Hotel -- Estes Park, CO
http://www.euci.com

NET-ATHOME™ -- The world’s most international connected home event
When:  September 26 & 27, 2006
Where: Hilton Hotel -- Cannes, France
 www.net-athome.com/

Copyright 2006, ghi, llc.  All rights reserved.

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