The number of U.S. consumers and small businesses “choosing tohave a choice” in their electric and gas service has doubled sinceJan. 1 to 3 million and is expected to reach 4 million by the endof the century, according to a report by Cambridge Energy ResearchAssociates (CERA).

Gas customers are in the lead, outnumbering “choice” electriccustomers three to one. And the customers are saving an average of5% to 15% off their utility bills.

“This is the breakthrough point in the marketing and economicsof deregulated energy in the U.S.,” said CERA’s Paul Parshley.”After many years of experimentation, several companies have alarge enough ‘critical mass’ of customers to achieve the scaleneeded to drive down the average cost of marketing and customerservice and create a profitable retail energy business. The trendtoward natural gas and electric choice is changing from a halting,stop-and-go process to ‘forward, march’.”

The largest number of customers directing their own energydestinies are in states that have promoted choice programs such asGeorgia and Ohio. Leading marketers are Columbia Energy Services,SCANA Energy, Georgia Natural Gas Services, Energy America andUnited Gas Management, CERA said. “Each of them has more than300,000 combined gas and electricity customers,” Parshley said. “Weexpect one of them to have a non-regulated base of more than onemillion mass market customers within the next 18 months.”

Regional differences make it difficult for marketers to succeednationally. For instance, Columbia built on its existing Ohio base,while Georgia Natural Gas Services, affiliate of Atlanta Gas Light,has taken a leading role in its home state. “But, there aretechnology, financial and retail companies that have the technologyand marketing skills to take advantage of the new opportunities inthis market,” said Claire Behrens, director of CERA’s NorthAmerican natural gas team. www.cera.com.

©Copyright 1999 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.