Donald W. Downes, Chairman

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Is Retail Electric Competition Working?
Donald W. Downes, Chairman Jack W. Betkoski,
Commissioner Connecticut Department of Public
Utility Control Legislative Office Building March
8, 2007
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Crude Oil Natural Gas Prices
Source EIA
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DPUC Oversight of Electric Rate Components
2000 Rates 9.4 cents per kWh
2007 Rates 17.8 cents per kWh
DPUC Regulated Charges 2.8 cents
Charges per CT Law 1.3 cents
DPUC Regulated Charges 2.6 cents
Charges per CT Law 1.6 cents
Federal Regulated Charges 1.6 cents
Federal Regulated Charges .4 cents
Market Based Prices 12.1 cents
Market Based Prices 4.8 cents
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Fuel Adjustment Clause Charges1995 to 2000
mils per kWh
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CLP and UI Rate Components
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CLP Rates
Standard Service SOLR
Transitional Standard Offer
cents per kWh
Standard Offer
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UI Rates
Standard Service SOLR
cents per kWh
Transitional Standard Offer
Standard Offer
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Number of Suppliers Aggregators2001 to 2007
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Licensed Suppliers Registered Aggregators
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Switches to Competitive Suppliers
number of customers
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Procurement Process

• Standard Offer
• Term
• CLP 4 yrs Fixed (2000-03)
• UI 4 yrs Fixed (2000-03)
• Winning Bidders
• CLP - 50 Select Energy, 40 NRG, 10 Duke
  Energy
• UI Enron Power marketing Inc then 2002-03 -
  Virginia Electric Power Co, assigned to
  Dominion Energy Marketing Inc
• Oversight
• UOMA

• Transitional Standard Offer
• Term CLP- 3 tranches with 8 blocks_at_ UI - 3yr
  fixed
• Principles/Standards
• Fair impartial
• Code of Conduct
• Broad bid group
• Cost effective with price consistency, stability,
  minimize revenue requirements
• Not to limit entities from pursuing conservation
  or demand response initiatives
• Maximum flexibility in bid structuring
• Maximum retail price setting flexibility
  consumer ability to choose or leave 3rd party
  supplier
• Minimize risk or impact of non-performance by
  winning bidders
• Winning Bidders
• CLP 2004-Select Energy, J.Aron Co,
  Constellation Energy Commodities Group, PPL,
  FPL 2005- J. Aron, PPL, Constellation, Sempra
  Energy TradingCorp 2006- J.Aron, Constellation,
  PPL, ConEd, Sempra, FPL
• UI PSEG, Dominion for Special Contracts
• Oversight
• UOMA
• Consultants Charles River Assoc. Inc, London
  Economics for CLP UI

• Standard Service
• Last Resort Service
• Term CLP- SS-staggered/ laddered, LRS-6-mo UI-
  3 tranches
• Principles/Standards
• Fair impartial
• Code of Conduct
• Broad bid group
• Cost effective with price consistency, stability,
  minimize revenue requirements
• Clear instructions, complete, non-discriminatory
  timely access to data
• Not to limit entities from pursuing conservation
  or demand response initiatives
• Bidder participation not limited to power plant
  owners, but can include those with full
  requirement supply from portfolio management of
  forward contracts hedging contracts for more
  competitive process with lower prices
• Winning Bidders
• CLP 2007(1st 2nd rounds)-Constellation,
  J.Aron, PPL, ConEd
• UI SS JP Morgan Ventures Energy Corp, FPL
  Energy Power Marketing Inc Special Contracts-
  Dominion SOLR Sempra Energy Trading Corp.
• Oversight
• OCC
• Levitan Assoc.

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DPUC Consumer Education Outreach Program
Outreach to CT electric consumers via paid
advertising, public relations, collateral
materials, and interactive communication tools

• Communication Tools
• Consumer Guide/Brochures
• Interactive Website
• Bill Inserts
• Payroll Inserts
• Multiplier Database
• Press Releases
• Speaking Engagements
• Trade Shows
• Business Forums
• Newsletters
• Give Aways
• Research

• Grass Roots Efforts
• Display Booths at Home Shows, Fairs, Festivals,
  Business Expos, Social Service Agency Forums,
  Business Forums, LOB Concourse, Concerts, Radio,
  Malls, Grocery Stores, Schools, Libraries,
  Farmers Markets, Radio-sponsored Special Events
• Presentations to Municipalities, Business Groups,
  Senior Groups, Chambers of Commerce, Rotary
  Lions Clubs, Community Action Agencies

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