new york state department of public service retail energy competition programs and strategies
DESCRIPTION
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 PresentationTRANSCRIPT
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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