While it remains to be seen whether winter will show up thisyear, gas customer choice programs are very much with the industryright now. Programs in Maryland, Michigan and Washington, DC, areunder way. On the electric side of customer choice, two pilots havejust been kicked off in Texas.

In central Maryland, nearly 500,000 gas consumers now havesupplier choice on the Baltimore Gas and Electric Co. (BGE)distribution system. Following the phase-in of two pilot programs,the Maryland Public Service Commission (PSC) said there were morethan 81,500 residential customers in Maryland already purchasinggas from non-utility suppliers, including 53,000 in BGE’straditional service territory. That leaves some 485,000 residentialcustomers in Central Maryland free to choose from among 13 gassuppliers.

Since 1995, the Maryland PSC has approved a series of stepsproviding residential and small commercial gas customers theopportunity to buy gas on the open market. Industrial customers incentral Maryland have been able to shop for gas since November1983, and large commercial customers got supplier choice inNovember 1995.

Maryland is among 23 states providing deregulated residentialgas customer choice. BGE is a member company of the ConstellationEnergy Group, a Baltimore-based holding company whose non-regulatedenergy businesses focus on retail energy services, power marketing,generation, and portfolio management. The holding company has morethan $3.4 billion in revenues and $9.2 billion in assets. BGEcurrently provides electricity to 1.1 million customers and gas tonearly 575,000 customers overall.

In Michigan, MichCon customers have a second chance to choose analternative gas supplier with the renewal of the Detroit LDC’s GasCustomer Choice program. When the program was first introduced inJanuary, 70,000 switched to a new supplier. The Michigan PublicService Commission approved Gas Customer Choice in April 1998. Theprogram allows up to 225,000 residential and small commercialcustomers to buy gas from another company by 2001. The programoffers enrollment periods in each of its three years; the firstended on May 15, 1999.

The second enrollment period began yesterday and runs throughFeb. 29. The program works on a voluntary, first-come, first-servedbasis, and up to 75,000 customers per year can switch to a new gassupplier. Therefore, as year two unfolds, up to 150,000 totalcustomers can choose a new supplier.

“We fully expect to reach the cap for this program because it’swhat customers want,” said Harold Gardner, vice president ofmarketing, sales and regulatory affairs at MichCon. “We listened toour customers and have tailored year two of this program to make iteven better for customers and suppliers.”

For customers who choose to remain with MichCon, a fixed rate of29.5 cents per hundred cubic feet during the plan’s duration isguaranteed. Rates will vary with suppliers.

And more than 100,000 Washington Gas customers in the Districtof Columbia, Maryland and Virginia are choosing suppliers.Washington Gas was one of the first utilities in the nation toimplement customer choice programs for residential and smallercommercial customers. The first program was introduced in Marylandin late 1995. The District of Columbia’s residential program andVirginia’s commercial and residential programs are a year old.Enrollment is underway for the District’s small commercial program,the most recent to be unveiled. The Public Service Commission ofthe District of Columbia granted the company’s request to expandand extend this program. Any of the more than 13,000 smallbusinesses in the District that enroll through Dec. 31 mayparticipate.

According to the American Gas Association, more than 40% of the55 million American households that use gas have or will soon havethe option to choose their gas supplier.

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