Electric Restructuring

1
Electric Restructuring-

• Experience in other states

2
Shopping Credits vs. Delivery Service Tariffs

• Shopping Credit approach starts from retail price
• When an ESP (Energy Service Provider) attracts a
  retail customer, the customer receives a
  shopping credit on his bill for each kWh that
  is now supplied by the ESP rather than the UDC
  (Utility Distribution Co)

3
PA Shopping Credits

• Consciously set above the wholesale price of
  electricity
• Difference between credit and shopping credit is
  the retail margin
• Retail margin can be shared with customers and
  used to cover retailing costs
• Choice started 1/1/99

4
CA Experience

• Unbundled Delivery Services
• Power Exchange (PX) similar to a poolco
• Customer have direct access to the wholesale
  market price
• Choice started 4/1/98

5
Massachusetts

• Unbundled standard offer generation service
  available from the distribution company
• Choice started 4/1/98

6
Customers Switching to ESPs in PA (Percentage of
Load Served by ESPs) 1/7/00 (Choice started
1/1/99)
7
Retail Customers Switching to ESPs in CA (as of
December 15, 1999) Retail choice started 4/1/98
8
Retail Customer Switching to ESPs in MA (as of
Nov. 1999) Retail choice started 4/1/98