Marketers participating in the soon-to-be-unbundled Georgiamarket scored some key victories in a decision last week by theGeorgia Public Service Commission which will provide them withcomplete customer information from Atlanta Gas Light in electronicformat, allow them a chance to prove they can do their own meteringand allow free trading of daily imbalances.

The PSC also increased the credit marketers will receive whenthey enroll customers. The original credit of $1.81 was increasedto $2.19 per month per customer. That represents the discount themarketer will receive on the amount it pays AGL for system serviceon behalf of each of the marketer’s customers.

“These are very important and very positive developments for thecompetitive market,” said David Adelman, with Sutherland, Asbill&amp Brennan, who represents a marketers’ coalition.

Scana Energy Marketing was particularly pleased with the factthey will have access to customer information. “This will allow usto tailor proposals based on a customer’s actual consumption. Wecan be a lot more effective. Also, we can save money on direct mailsince we will have the actual customer list,” said Warren Darbywith Scana. He particularly was pleased that the question of meterownership and meter reading will be handled separately instead ofbeing bundled with all other ancillary services. “This is somethingwe are capable of doing,” Darby said, noting Scana has adistributor affiliate.

But mainly, “I’m glad this (the regulatory groundwork) hasended,” Darby said. “Now we can get ready – presuming we arecertificated – to get into the market. This whole thing in Georgiais very exciting. If it works here it will be the model for thecountry. It looks like the PSC has thought this whole thing throughvery well from the customers’ perspective.” Since marketers areonly allowed to serve larger customers in proportion to the numberof residentials they serve “we have to keep the residentialcustomers happy or we’ll have nothing but dust. We’ll be opening anumber of customer service offices in the state, not just inAtlanta.”

The PSC Tuesday ordered AGL to make the following information oneach residential and commercial customer available on CD ROM withinthe next 15 days: name, service address, billing address, AGLaccount number, date service established, design-day requirementand last 12 months consumption, designated pool group, billingcycle, type of meter and index device and SIC code (commercialcustomers only). Marketers will be given the information as soon asthey are certified and it is available. Certificates for theoriginal batch of marketer applicants, which has been reduced to21, are expected to be issued by Oct. 15. The market opens Nov. 1.

As part of its action on a package of submissions by the PSCadvisory staff for reconsideration from its June order theCommission set a separate docket to consider on an individual basiswhether marketers can install and own meters. The marketer willhave to demonstrate he can meet all the technical safety andfinancial requirements of state and federal law.

Large marketers Enron, PG&ampE Energy Services and SonatMarketing meanwhile have withdrawn their applications forcertification as marketers in the Georgia program. Industry sourcessuggested that some of the larger marketers might not want to takeon the residential market with all its special requirements rightnow. They are more likely to act as wholesale suppliers to theretail marketers. Among large marketers still seekingcertification, however, are Duke Energy Trading and Marketing,Shell Energy Services, Williams Energy Services, Columbia EnergyServices and NorAm Energy Management.

Since the unbundling of AGL encompasses most of the state andbecause of the forward-looking features of thecooperatively-produced plan, which has involved legislators,marketers, AGL and the PSC, the consulting firm Xenergy ofBurlington, MA, has selected it for an extensive study. “We expectthe Atlanta Gas Light retail choice program to be one of the mostinteresting and robust restructured energy markets to date,” saidDr. William R. Huss, senior vice president in charge of Xenergy’sconsulting service. The report will examine suppliers and theirmarket share, detailed behavioral and attitudinal data on all typesof customers, and a discussion of market rules and their impact oncompetition. The study also will examine retail gas market activityin Pennsylvania, Ohio and Michigan.

Ellen Beswick

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