For those seeking to sell energy in a competitive environment,it’s a happy coincidence widespread consumer use of the Internethas come about at the same time deregulation of gas and powerunfolds. Several Internet sites have been established to simplifyshopping for consumers and reduce the cost to marketers of reachingsales prospects.

Energy.com, Energyagent.com, Energymarketplace.com andEnergyguide.com are a few sites that put marketers and customers intouch with one another and in some cases allow energy transactionsto be consummated on line.

Martin Flusberg, president of Nexus Energy Software, developerof Energyguide, said his company’s site lists about 55 gas and 35electricity marketers. Gas customers in New York, Ohio, Maryland,Michigan and Georgia can access information about suppliers. Andcustomers in New York, Pennsylvania, California, Massachusetts andRhode Island can access information about electric suppliers.

Currently, Energyguide can initiate transactions for about 12 ofthe 35 electric suppliers and none of the gas suppliers. The sitelists all suppliers in a market and provides information. Once asupplier contracts with Energyguide, it gets a more extensivelisting and the ability to begin sales transactions over the Web.

“We expand the information significantly if they sign up withus,” Flusberg said. “The supplier gets their logo. They have theopportunity to have a custom message. plus the ability to doelectronic sign-up.”

Currently the site, which began operation focusing onelectricity and later added gas, targets only residentialcustomers, but plans are to add small businesses as well. Revenueis derived from a transaction fee when a deal initiated through thesite is consummated.

Southern California Gas (SoCalGas) announced last week AquilaEnergy and Engage Energy agreed to participate as marketers on theutility’s Energy Marketplace Web site.

The website was launched in November 1997 to provide customerswith free real-time access to comparative information on energyservice providers, electric and natural gas prices and other energyinformation.

Energy Marketplace features a request for proposal (RFP)function that enables customers to secure price quotes fromindependent energy suppliers based on the customers’ specificconsumption profile and price preferences.

With the addition of Aquila and Engage, the Marketplace nowhosts 16 marketers serving natural gas and/or electric customers inCalifornia on its site. For a small fee, marketers can participateas suppliers on the system and receive pricing requests fromcustomers. Marketers can also use Energy Marketplace to displaydetailed information on their companies and service offerings.

Unlike Energyguide, Energyagent, which went live Jan. 1, 1998,is only targeting commercial and industrial customers for the timebeing. Residentials will come later, said Dan Piche, director ofenergy services for North American Power Brokers Inc., developer ofthe site. Also unlike Energyguide, Energyagent can processtransactions on line following an auction process that matchessuppliers with buyers. The site serves Connecticut, Massachusetts,New Hampshire, New York, Pennsylvania, Virginia and a few customersin the Chicago area. The service is predominantly natural gas.

Revenue comes from transaction fees. North American PowerBrokers also licenses its software to utilities. Right now revenueis about evenly split between transaction and licensing fees, Pichesaid. In the future, the contribution from transaction fees isexpected to be larger. Also in the future, privately held NorthAmerican Power Brokers could go public. “I hope so,” Piche said. “Ithink everybody that has a dot-com tag at the end of their nameslooks to go in that direction.”

Energy.com also gets the bulk of its revenue from transactionfees paid by marketers. “It actually varies from region to regiondepending on the markets there,” said Tammy Cardoso, marketingservices manager for Energy.com. “If we sell a product [such aslight bulbs], we’ll take a commission off of that as well.

“The marketers are not incurring a cost unless they’re acquiringthe customer or making a sale or getting a lead. We also do banneradvertising, like a lot of the sites do, and generate some revenueas well.”

Currently, most of Energy.com’s business is gas, but the sitehandles power transactions as well. The site was launched in March1998 by Columbia Energy Group, which is seeking investors in theproject. The site also offers courses in the fundamentals of gas,electricity and deregulation. Originally intended for consumers,these courses have become somewhat popular with energy companieswho use them to train new hires who are new to the energy industry,Cardoso said.

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