launches to promote electricity competition

As you may know, the State of Arizona is reviewing whether to open the electric market to consumer choice. A competitive electric market will give Arizona families, businesses and government entities the right to shop for their electricity. This move will advance our electric market and economy, and the time is now.

The following are some benefits of electric competition:

  • Delivers competitive pricing to electric consumers
  • Empowers residential and business customers with choice and reliability
  • Creates jobs and foster innovation
  • Promotes renewable energy use
  • Improves efficiency and customer service at utility companies

The Arizonans for Electric Choice & Competition’s (AECC) mission is to promote a fair and competitive electricity market for the benefit of all Arizona consumers. I encourage you to visit AECC’s new website to learn more about the issues and to show your support for consumer choice. Your support will make a difference.


Pennsylvania energy regulatory update

Pennsylvania state lawmakers returned to the Pennsylvania Capitol June 3 with the state budget as the top order of business. There are two energy-related bills moving through the legislature that aim to enhance natural gas service in the Commonwealth that Direct Energy is monitoring.  They are HB 1188 (sponsored by Representative Payne) and SB 738 (sponsored by Senator Yaw).

HB 1188 addresses eliminating the current interest rate structure utilities are allowed to use when reconciling purchase gas costs and; eliminating the migration rider charged to customers who switch to a competitive supplier. By addressing these two concerns, it creates a more equal “apples to apples” price comparison for customers between utility and supplier offers.

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California retailers see positives ahead

Article from Platts Megawatt Daily, January 7, 2013, by Tom Tiernan

The retail choice market in California can grow only in small steps, but retail suppliers are hopeful that some recent regulatory changes and possible legislative efforts will improve market conditions in 2013 and beyond.

The retail choice load in California is limited by the cap that has been in place for several years, though a pair of retail suppliers have commented on the positive signs for competitive suppliers.

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The Heat is Rising, and so is the ERCOT price cap

For those of you that are part of the Texas market this comes as no surprise, but for those of you in other parts of the country it may be of interest to you. The Electricity Reliability Council of Texas (ERCOT) has worked diligently over the course of the last year to develop plans to help alleviate the shrinking reserve margins in Texas as well as incent investors to build new generation in the ERCOT market. The issue was exacerbated in the summer of 2011 as Texas experienced a severe drought and the hottest summer in the last 117 years. That’s awfully hot. Continue reading