Opening Markets, Adding Value and Winning Customers with Innovation, Technology, and Service – a New York Perspective. Ronald M. Cerniglia Director Office of Retail Market Development New York State Public Service Commission (518) 473-0285 [email protected]. - PowerPoint PPT Presentation
Opening Markets, Adding Opening Markets, Adding Value and Winning Value and Winning Customers with Customers with Innovation, Technology, Innovation, Technology, and Service – a New and Service – a New York Perspective York Perspective Ronald M. Cerniglia Ronald M. Cerniglia Director Director Office of Retail Market Development Office of Retail Market Development New York State Public Service Commission New York State Public Service Commission (518) 473-0285 (518) 473-0285 [email protected][email protected]The National Energy Marketers Association Annual Meeting The National Energy Marketers Association Annual Meeting Washington, DC – April 25, 2006 Washington, DC – April 25, 2006
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Opening Markets, Adding Opening Markets, Adding Value and Winning Value and Winning Customers with Customers with Innovation, Technology, Innovation, Technology, and Service – a New and Service – a New York PerspectiveYork Perspective
Ronald M. CernigliaRonald M. CernigliaDirectorDirectorOffice of Retail Market DevelopmentOffice of Retail Market DevelopmentNew York State Public Service CommissionNew York State Public Service Commission
The National Energy Marketers Association Annual Meeting The National Energy Marketers Association Annual Meeting Washington, DC – April 25, 2006Washington, DC – April 25, 2006
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Retail Access in NY is Continuing Retail Access in NY is Continuing to Make Steady Progressto Make Steady Progress
• There are at least seven ESCOs serving residential electricity, fourteen serving non-There are at least seven ESCOs serving residential electricity, fourteen serving non-residential electricity, eight ESCOs serving residential gas, twelve ESCOs serving residential electricity, eight ESCOs serving residential gas, twelve ESCOs serving non-residential gas, in every major service territory in NY. Most service territories non-residential gas, in every major service territory in NY. Most service territories have many more.have many more.
ESCOs Serving Electric Customers by Service Territory
0
5
10
15
20
25
CHGE CENY Nat Grid NYSEG O&RU RG&E
Residential Electric Non-Residential Electric
ESCOs Serving Natural Gas Customers by Service Territory
05
101520253035
CHGE CENY KeySpan NFG Nat Grid NYSEG O&RU RG&E
Residential Natural Gas Non-Residential Natural Gas
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Retail Access in NY is Continuing Retail Access in NY is Continuing to Make Steady Progress to Make Steady Progress (continued)(continued)
Load migration metrics have been increasing, for both electricity Load migration metrics have been increasing, for both electricity and natural gasand natural gas
Electric Customer Load Migration
0.0
20.0
40.0
60.0
80.0
2003 2004 2005Data taken from December Reports
Perc
enta
ge .
Non-ResidentialLarge TOU
Small Non-Residential/Streetlighting
Residential
Natural Gas Customer Load Migration
0.0
10.0
20.0
30.0
40.0
50.0
60.0
2003 2004 2005Data taken from December Reports except for Nov 2005
Perc
enta
ge . Non-
Residential
Residential
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Retail Access in NY is Continuing Retail Access in NY is Continuing to Make Steady Progress to Make Steady Progress
(Electric)(Electric)As of February 2006, a total of 570,000 customer accounts, representing the As of February 2006, a total of 570,000 customer accounts, representing the following percentage of electric customers, have migrated to an ESCO:following percentage of electric customers, have migrated to an ESCO:
• 55% of large commercial / industrial customers (72% of load)55% of large commercial / industrial customers (72% of load)• 19% of small commercial / industrial customers (44% of load) 19% of small commercial / industrial customers (44% of load) • 7% of residential customers (9% of load) 7% of residential customers (9% of load)
An additional 19,000 customers are purchasing “green power” through green An additional 19,000 customers are purchasing “green power” through green power providerspower providers
Number and Percent of Migrated Customer Accounts by UtilityNumber and Percent of Migrated Customer Accounts by UtilityNumberNumber PercentPercent
Retail Access in NY is Continuing Retail Access in NY is Continuing to Make Steady Progress (Gas)to Make Steady Progress (Gas)
As of February 2006, a total of 413,000 customer accounts, representing the following As of February 2006, a total of 413,000 customer accounts, representing the following percentage of gas customers have migrated to a marketer:percentage of gas customers have migrated to a marketer:
• 43% of large non-residential customers (79% of load) 43% of large non-residential customers (79% of load) • 17% of all non-residential customers (31% of load)17% of all non-residential customers (31% of load)• 9% of residential customers (14% of load)9% of residential customers (14% of load)
Number and Percent of Migrated Customer Accounts by UtilityNumber and Percent of Migrated Customer Accounts by UtilityNumberNumber PercentPercent
New York’s Wholesale Electric and Natural Gas New York’s Wholesale Electric and Natural Gas Prices (2000 – 2005)Prices (2000 – 2005)
NYISO Day Ahead Wholesale Electric Energy Prices by Zone & Natural Gas Prices(Monthly Averages)
$0
$20
$40
$60
$80
$100
$120
2000 2001 2002 2003 2004 2005
$/M
Wh
Ele
ctr
icity P
rice x
$0
$2
$4
$6
$8
$10
$12
$14
$/M
MB
tu N
atu
ral G
as P
rice x
WEST HUD_VL NYC LONGIL * NYC Gas $/MMBtu Henry Hub Gas $/MMBtu
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August 25, 2004 Policy Statement outlined the Commission's end state vision August 25, 2004 Policy Statement outlined the Commission's end state vision of retail markets. The Commission directed the utilities to file Retail Access of retail markets. The Commission directed the utilities to file Retail Access Plans for approval, incorporating the following Commission recommendations:Plans for approval, incorporating the following Commission recommendations:
Eliminate barriers to market entry by ESCOsEliminate barriers to market entry by ESCOs Statewide use of O&R Switch & Save (Power Switch) Program Statewide use of O&R Switch & Save (Power Switch) Program Utility purchase of ESCO accounts receivable Utility purchase of ESCO accounts receivable Large Scale Retail Auctions / OutsourcingLarge Scale Retail Auctions / Outsourcing Market Match / Market Expo / Energy FairsMarket Match / Market Expo / Energy Fairs Affinity Group Aggregation Affinity Group Aggregation Coordinated Utility/ESCO/PSC Education and Marketing CampaignCoordinated Utility/ESCO/PSC Education and Marketing Campaign Utility Portfolio Management and PricingUtility Portfolio Management and Pricing Monitoring the Market for Anti-Competitive BehaviorMonitoring the Market for Anti-Competitive Behavior
Process methods for program implementation: Process methods for program implementation:
Utility Retail Access Plan filings followed by a collaborative processUtility Retail Access Plan filings followed by a collaborative process Rate case proceedingsRate case proceedings
The Path to Our Vision for the FutureThe Path to Our Vision for the Future
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The Path to Our Vision for the Future The Path to Our Vision for the Future (continued)(continued)
There have been a number of recent developments regarding competitive markets There have been a number of recent developments regarding competitive markets in New Yorkin New York
ESCO Statement of Principles for MarketingESCO Statement of Principles for Marketing
NYSPSC actions on April 11th NYSPSC actions on April 11th Hourly Pricing OrderHourly Pricing Order National Grid Retail Access Plan Joint Proposal National Grid Retail Access Plan Joint Proposal ESCO / Utility Referral Program Orders for Con Ed, National Grid, ESCO / Utility Referral Program Orders for Con Ed, National Grid, and and O&R O&R
Central Hudson has launched its Energy Switch ESCO Referral program Central Hudson has launched its Energy Switch ESCO Referral program
NYSEG implemented POR without recourse on February 1NYSEG implemented POR without recourse on February 1stst
Coordinated Utility / ESCO/ PSC Education and Marketing CampaignsCoordinated Utility / ESCO/ PSC Education and Marketing Campaigns
Staff Report on the State of Competitive Energy Markets: Progress To Date Staff Report on the State of Competitive Energy Markets: Progress To Date and Future Opportunities and Future Opportunities
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Top Ten Retail Access Issues Facing the Industry
10. The ESCO Community needs to be a more effective advocate on behalf of competitive markets
9. Establish the “right” utility commodity price (e.g., default, price to beat)
8. Remove barriers to entry and level the playing field
7. Increase our collective competition awareness efforts to allow customers to make an informed choice
