April 22, 2010

While lots of attention has been paid in Pennsylvania to the end of rate caps in PPL's territory and the impact marketers may have this year, a majority of the state's market is still in a holding pattern.  PPL represents about 25% of the ratepayers in the state, said a PUC review -- and with that, only about 40% of the state is open to power choice.

          At the end of 2010 however, the rest of the state -- the remaining 60.6% of ratepayers -- will open up to marketers.

          By territory, the PUC estimated the share of power users in the rest of the commonwealth at:

• PECO Energy, 27.8%;

• West Penn Power, 12.7%;

• Pennsylvania Electric, 10.6%, and

• Metropolitan Edison at 9.5%.

          Marketers and regulators will focus on the rest of the state opening up in about nine months.

          One of those is retailer GDF Suez Energy Resources, a firm that serves C&I in the markets now open in the state plus customers in Delaware, Texas, Massachusetts, Maine, Maryland, New York, New Jersey, Illinois, Connecticut and Washington, DC.

          Suez has its plans set for the opening of the rest of the Pennsylvania market and is already pricing out contracts for C&I in the four territories where competition is still waiting.

          The contracts signed now will have a January 2011 start date, an approach the firm used successfully when PPL was to open, a Suez spokesperson told us, lauding the benefits of getting an early start to get customers ready.

          With its entry into these new markets, Suez plans to add to its rapidly growing presence in Pennsylvania by opening an office in the state.

          The spread of competition to the rest of the state should go smoothly, NEM predicted, based on developments in PPL's territory.  "Pennsylvania is one of our number-one priorities for 2010," NEM President Craig Goodman told us.  Virtually every marketer has listed Pennsylvania as one of its priority states."

          The idea of such a large share of population opening up at one time is not something to be feared, he added.

          "Marketers have been gearing up for this.  We are very encouraged," said Goodman.  "I have heard a lot of positive feedback about 2010 and keep in mind we have learned our lessons in the past about a huge influx of new customers, assuming everyone works together, that shouldn't be a problem."