Electricity Choice Customer Benefits

May 2004

On May 25, the New England Conference of Public Utilities Commissioners (NECPUC) hosted a panel of customers and customer advocates to discuss their experiences with retail choice.

"Restructuring has been working for Shaws," said Kathy Loftus, Director of Energy and Environmental Management at Shaw's Supermarkets. "We have looked at every option available and were among the first large customers to switch to a competitive supplier in 1998, after Massachusetts gave customers the ability to choose their electricity supplier."

Bob Valair, the Director of Energy Management at Staples Inc., noted during the panel discussion that Staples participates in a wide range of energy efficiency programs, uses energy management and conservation initiatives, and maintains an energy portfolio comprised of 10% renewable energy.

"Competition is always healthy. [Retail energy competition] gives choices to customers and reduces our energy cost. We can then pass the cost savings onto the customers. It's win-win situation for both of us," Valair noted. He added that Staples views the reputation and the services offered by their energy suppliers as a critical part of their internal team, helping to determine how to improve upon their overall approach to energy management.

Staples uses a variety of retail electricity suppliers across the U.S., including three of the Alliance for Retail Choice members: Strategic Energy, Constellation NewEnergy, and Green Mountain Energy.

Reliant Energy Announces Department of Defense Supply Deal

Reliant Energy has been awarded a contract by the U.S. Department of Defense to supply energy to several military installations including Andrews Air Force Base and the Walter Reed Medical Center.

The 17-month contract calls for Reliant Energy to supply 93 megawatts of electricity beginning July 4. Valued at $35.9 million, the contract will save taxpayers $11.7 million when compared with the regulated standard offer service.

"These transactions are the result of our strategy to integrate our wholesale asset position with our distinctive retail skills in PJM, one of Reliant's key regions. The competitive market rules here facilitate the growth of our business and we soon hope to expand into the District of Columbia and Pennsylvania," said Jim Robb, senior vice president of retail marketing at Reliant Energy.

Also participating in the Reliant Energy contract are: Carderock Naval Weapons Testing Center, the National Institute of Standards and Technology, Adelphi Labs, and the National Naval Medical Center in Bethesda, Maryland.