Choice to expand in Louisiana? Michigan Retail Growth Reported

March 2005

Wal-Mart Advocates Retail Choice

Wal-Mart filed a recent request with the Louisiana Public Service Commission to broaden its competition pilot by lowering the minimum size for participants in the pilot from 5 MW to 1 MW, which would allow commercial customers to aggregate their load and be able to participate in the pilot.

In its experience operating in regulated markets compared with markets that allow customer choice, Wal-Mart reported benefits in properly structured retail markets. Wal-Mart favors retail choice because it helps to lower costs to its customers, improve business productivity in the state, and result in more efficient utilization of generation, according to Wal- Mart's January filing. The company cited four states where it has experienced significant energy savings as a result of retail choice:

In California, Wal-Mart reported more than 20% reductions in electricity costs as a result of direct access;

In Texas, Wal-Mart's savings under the Texas Electric Choice Program have ranged from 15%-- 20% when compared with the Price to Beat;

In Maryland, Wal-Mart expects savings on its electricity bills to be over 5% when comparing competitive supply rates with bundled utility options;

In Michigan, Wal-Mart expects savings on its electricity bills to be over 10% as a result of purchasing supply from an competitive supplier.
Wal-Mart currently purchases electricity from competitive suppliers in 14 other states. A Technical Conference has been scheduled for Thursday April 21, 2005, to address stakeholder comments on Louisiana's retail choice plan.

Top U.S. Retailers Announce Sizable Deals

Three Alliance for Retail Choice members - Constellation NewEnergy, Direct Energy, and Reliant Energy - have recently announced innovative, substantial deals:

Constellation NewEnergy signed a 5-year, 40-facility power deal with the Rocky View School Division in Alberta that takes effect January 1, 2006. The division chose NewEnergy for its combination of "competitive pricing, innovative products and superior customer service."

Direct Energy entered into a two-year contract with Six Flags Theme Parks' Texas properties for almost 47 GWh/year. The deal names Direct Energy as the "official energy company" for three Six Flags Over Texas parks, and will also give Direct Energy exclusive marketing access to visitors at the park in San Antonio under its CPL Retail Energy brand. Six Flags will benefit not only from competitive energy rates, but will also be offered the tools to manage their energy through Energy Analyzer (sm), Direct Energy Business Services' load profiling tool and Building Energy Performance Index (sm), a benchmarking program that helps facility managers compare a portfolio of properties to optimize energy usage.

Reliant Energy and the Texas Rangers announced they have signed a multi-year marketing and energy supply agreement making the company the official electricity supplier to the team and Ameriquest Field in Arlington. "Reliant Energy offered the right combination of an innovative pricing structure for our electricity supply and the opportunity to work with a valuable marketing partner," said Jeff Cogen, president of the Texas Rangers, in a recent news release.