KN Energy said yesterday its Nebraska customer choice programhas topped all other pilots in the U.S. with more than 68% ofeligible Nebraskans participating. About 56,100 customers out of82,500 eligible elected to receive gas from an alternativesupplier, putting KN’s program well over Columbia Gas of Ohio on apercentage basis – only 35% of Columbia’s customers in its Toledo,OH, pilot are participating – but slightly less than Columbia inthe number of customers choosing alternative suppliers. Columbiacurrently has 57,500 customers signed up.

“Our efforts show that deregulation can work anywhere in ournation, as long as utilities are committed to giving customerssimplicity, convenience, flexibility and choice,” said MortAaronson, KN Energy chief marketing officer. “Our customers inNebraska are clearly winners. They benefited through lower rates,diversity of supply, and additional products and services.”

Such high participation levels are rare in the industry. KNattributes its success to the variety of other products and optionsoffered to customers in the program, such as the WeatherProof Billand SimpleChoice branded “infotainment” products offered by KNServices, KN’s unregulated retail marketing affiliate. Pricesavings clearly weren’t much of a factor. KN said on averageparticipants will save only about 5%, or $25 a year. Thedifferences between KN’s default commodity rate and those offeredby the three other suppliers were minuscule. The default rate,which was lowered at the start of the pilot, was 44.7 cents/therm.The Public Alliance for Community Energy (PACE), based in Lincoln,NB, and another competing supplier, United Gas Services ofBrighton, CO, both offered 43.8 cents. KN Services offered 43.5cents/therm.

KN Services came away with the most customers, 38,000, or 68%.PACE captured 15,000, or 26%. United ended up with 175 customers.And 4% chose to stay with the utility. Those that decided not toparticipate also ended up with KN Energy, leaving the utilityserving about 28,750. As a result, the parent company lost only15,175 customers out of 82,500 in its largest service territory.

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