Electric deregulation has lost its luster for large retail energy consumers, according to a new survey by RKS Research & Consulting. With California’s energy catastrophe, Enron’s collapse, the weak economy and Sept. 11 weighing heavily on their minds last year, 402 key energy consumers in general lost interest in electric deregulation, North Salem, NY-based RKS said.

“For example, one-third of the businesses sampled (34%) feel deregulation should be postponed indefinitely, while another 17% want states with choice to turn back the clock and return to regulated markets,” RKS said. “Only 35% believe the rest of the country should accelerate or stay the course to deregulate electricity markets.”

In telephone interviews with energy managers at 805 medium-to-large U.S. businesses and the 402 key energy consumers, RKS found that across the board, customers who have chosen a power supplier other than their regulated utility company are less satisfied with their new supplier. Those participating in customer choice are the most critical of deregulation, registering lower ratings for supplier performance and loyalty than businesses in regulated markets.

“They certainly have changed their opinions in the West,” said RKS spokesman Richard Claeys, noting that the RKS score of opinions on deregulation in the California was 6.5 on a 10-point scale compared to 7.5 in the South. There were significant regional variations in the RKS results. For example the West has supplanted the Northeast as the region with the most negative views of their energy suppliers.

“These latest findings confirm for the first time that customers in regulated markets are no longer looking forward to having choice,” said RKS President David Reichman. “Many of the causes of this loss of momentum can be traced back to self-inflicted decisions by energy suppliers. For example, repeated reorganizations, name changes and cost cutting at the customer services level seem to be disrupting the continuity and relationship-building so vital to retaining larger business customers.”

For more details on the RKS survey, contact Joan Eckels at (914) 277-6900 ext. 102. Also visit the RKS web site at www.rksresearch.com.

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