ISO New England

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ISO New England Regional Energy
Forum Connecting Wholesale Retail Electricity
Markets Rich Zelenko October 17, 2005
Dominion Retail


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Dominion Retail Profile

• Dominion Retail is an affiliate of Dominion
  Resources headquartered in Richmond, VA.
• Serve 1.2 million customer accounts in 9 states
• Primary focus is the residential and small
  commercial market
• Electricity and natural gas
• Warranty products and services
• Dominion Retail is anxious to expand in New
  England

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Dominion Retail Markets

Maine Electric 110
Ohio Gas 196,000 Electric
55,000 Services 292,000

• Customers
• 389K Gas
• 244K Electric
• 539K Services
• 1.2 Million Total

Massachusetts Electric 30,000
Connecticut Electric 32,500
Pennsylvania Gas 113,000 Electric
126,000 Services 155,000
Illinois Gas 80,000
Virginia Services 81,000
West Virginia Services 11,000
North Carolina Services 165
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What Makes a Competitive Retail Electric Market?
1. GOAL - state desires retail market 2.
LEVEL PLAYING FIELD - appropriate costs in
Price-to-Compare 3. RULES - not overly
burdensome and costly 4. STABILITY- limited
regulatory and legislative changes 5. STRONG
LINKAGE- retail and wholesale 6. RESULTS - 50
to 60 switching of small customers
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Advance Competition in New England for Small
Customers
I. Level the Playing Field
Price-To-Compare needs to be reflective of
Retail Offers Some Examples Bad debt,
attrition, EDI data, compliance w/consumer
protections notifications, general customer
service, database investment management
Improvements 1- Purchase-of-Receivables
program 2- Appropriate rate unbundling between
distribution generation 3- Allow customers to
migrate in/out without penalty anytime 4- Utility
referral program 5- Retail auctions
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Advance Competition in New England for Small
Customers
II. RULES- not overly burdensome costly

• Standard Offer rate and bid structure- more
  market based
• Customer information- name, address, acct. no.,
  usage
• Enrollment flexibility
• Improvements
• 1- Provide a customer list with proper
  information
• 2- Monthly/quarterly market based Standard Offer
  pricing
• 3- Eliminate confusing migration adjustments
• 4- Eliminate 3rd party off-site enrollment
  recording

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Advance Competition in New England for Small
Customers
III. Stability

• Regulatory and legislative uncertainty increases
  risk/costs-LICAP, FMCC, SECA
• Improvements
• 1- After proper set-up, limit midstream
  regulatory changes
• 2- Consistent Standard Offer bid schedule

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Advance Competition in New England for Small
Customers
IV. Strong Linkage with Wholesale Market

• A robust wholesale market supports retail and
  vice versa
• Improvements
• 1- Retail auctions
• 2- Municipal aggregation programs
• 3- Long-term relationships between wholesalers
  and retailers

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RESULTS Benefits of Retail Competition

• 1. Better electric offers for varying consumer
  needs/segments
• fixed long-term, fixed medium-term, variable,
  variable w/Cap, DSM, aggregation, renewables,
  switching incentives, fixed bill w/no true-up,
  etc.
• 2. New product service innovations
• metering technologies, DSM, distributed
  generation, etc.
• 3. Long-term competitive forces to keep prices
  in check
• retailers will compete every day for customers
  business, looking at longer-term life time
  value of electricity and other products
  services
• 4. New generation investment tied to Retail load
  growth
• 5. Economic development
• tailored rates to site business, use of local
  contractors for ancillary products services
• 6. Competition brings better service
• customers reward good service (and punish bad
  service) quickly and efficiently

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