OHIO COMPETITION LAW: The
Devil's in the implementation

Ohio's market was opened by state lawmakers in 1999 that required the payback of stranded costs during a market development period (MDP) that was to end once utilities' markets were sufficiently competitive or no later than the end of this year, Cinergy General Counsel John Finnegan reminded.
     The law slashed and froze rates during the MDP and required POLR service at market rates afterward, Finnegan told the Energy Bar Assn.
     Once markets opened, shopping was tepid except where communities passed laws to allow local governments to shop for a supplier for all, giving customers the opportunity to opt out.
     Nearly all switching -- 93% of residential and 88% of business customers -- was through the government pools, Finnegan explained ...

Power buyers want FERC to be more
aggressive in fixing markets

Congestion costs said to exceed $1 billion/year

FERC keeps trying to patch markets but that's not working, John Anderson, ELCON president, told a press briefing.
     "We're asking for structural changes in the market," he explained.
     UK regulators learned their market was broken but were not afraid to start from scratch in creating a better plan, he noted, but Anderson was quick to add that he's not advocating the UK's New Electricity Trading Arrangements (NETA) design.
     ELCON's new state-of-the-markets report is more critical and urges FERC to get tougher soon.
     Anderson finds it ironic that most FERC orders begin with the notation that regulators are issuing an order to benefit customers yet most customers often don't support the order ...

Unitil plan to boost C&I shopping
in New Hampshire…

... When transitional offer goes away next year.
     But price stability built into its plan for residentials is likely to do little to encourage shopping.
     The IOU wants to buy supply for its non-shopping C&Is every three months through a competitive RFP with rates changing monthly for large C&Is and quarterly for small ones.
     Rates would be considerably closer to market since they’re now fixed for six months ...

Cirro puts price comparison tool
on web in hot Texas market

Relies on TV to build brand

Cirro Energy put a price comparison tool on its web page a few months ago to show prospective customers how much they can save by switching from the incumbents.
     Making the savings calculator easy to use was vital, said Timothy Bell, Cirro’s executive vice president
     The firm has an energetic TV campaign and a jazzed-up website.
     Prospective customers plug in zip code and a monthly bill ...

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