Disappointment with the development of retail gas and powermarket competition nationwide prompted another major player toannounce it is rethinking its plans and redirecting marketingefforts. EnergyOne LLC, the 50-50 marketing alliance of UtiliCorpUnited and Peco Energy, is being restructured in order to implementnew joint strategies tailored to deal with “a competitivemarketplace that refuses to show up,” the partners said yesterday.Their announcement follows by only a week Enron’s statement that itis ceasing residential marketing efforts in several states becausecompetition has been so slow to develop.

“The fundamental foundation of the EnergyOne LLC partnership wasa deregulated, fully competitive nationwide marketplace that wouldallow consumers to take advantage of the new concepts thepartnership developed,” said UtiliCorp Chairman Richard C. Green,Jr. “But we’re faced instead with a market that continues todiscourage innovation – an evolving patchwork quilt of competitiveregulatory structures across the country, with some states movingaggressively while others adopt a slower, more deliberate pace.”

Established a year ago, EnergyOne LLC was designed to provideutilities facing competition with a larger number of services andproducts to market to their customers. The branded package includednot only gas and power, but AT&T long distance service and ADThome security systems. But UtiliCorp and Peco were the onlyutilities willing to give the branded package of products a try.Forty-one other utilities looked at the franchise but the responsewas unanimous. None felt enough of a competitive threat that theywould need additional tools to hold onto their customers.

While EnergyOne officials did not provide details of theirrestructuring plan, they indicated consideration will be given toan increased emphasis on joint energy commodity marketing. Thefranchise offer has been shelved, but Peco and UtiliCorp plan tocontinue offering EnergyOne branded products in their serviceterritories.

The slow and inconsistent development of a truly open nationalmarketplace was forcing the entire industry to rethink competitivestrategies, according to Peco Chairman Corbin A. McNeill, Jr.”Frankly, we know of no one in this business who can predict justwhen our nation might open up to the kind of competition weenvisioned, but we feel it makes greater sense for us to attackthis market differently now, rather than wait for it to wake up.”

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