Presentation to Massachusetts Electricity Roundtable

1
Presentation to Massachusetts Electricity
Roundtable
JumpStart Program

• Presented by
• Steven M. Rothstein
• AES NewEnergy, Inc.
• May 18, 2001

2
Alternative Strategies
Participation Rates
Mandatory Enrollment (opt out)
Voluntary Enrollment (opt in)
Technical Changes
Customer Education
Current System
Mass DTE changes
3
Topics to Discuss

• Customer Education
• Technical Changes
• Performance Based Rates
• Voluntary Enrollment
• Mandatory Enrollment

4
AES NewEnergy Working In New England
Connecticut Conference of Municipalities
Massachusetts Food Association
New England Newspaper Association
Connecticut Conference of Independent Colleges
5
Consumer Education

• Critically important for all customer classes.
• Increased customer awareness will stimulate
  greater competition.
• Demand-pull strategy.

6
Consumer Education

• We advocate
• Additional bill stuffers
• Separate mailings
• Customer seminars (LDC and/or DTE sponsor)
• Media outreach
• Paid advertising
• Public Service Announcements
• Web site links

7
Technical Changes

• The electricity business is largely an
  information management business.

8
Technical Changes

• Streamline data authorization process
• Support electronic and/or 3rd party telephone
  confirmation (data authorization and contract)
• Encourage use of smart account numbers.
• Encourage implementation of power connections
  type programs statewide

9
Technical Changes cont

• Help new large Default Service CI customers
  obtain historical data.
• Assist suppliers with collecting customer credit
  information
• Allow suppliers to collect outstanding payments
  more timely.
• Ensure LDC has enough resources to process
  customer data in a timely manner

10
Performance Based Rates

• As DTE moves forward with Performance-Based
  Rates, include support for competitive market as
  one of the measurements.
• Customer education of competitive market
• Ease of customer data flow
• Other measurements to support customers right to
  choose

11
Voluntary Enrollment (Opt In)

• Market for new existing Default Service
  customers.
• Account managers to meet with CI customers.
  (Individual meetings and co-branded seminars.)
• Provide briefing to pre-qualified suppliers about
  customer background.

12
Voluntary Enrollment (Opt In)

• Customer Service Representative
• Have prepared scripts outlining preferred
  suppliers products.
• Have suppliers authorization form, marketing
  material and website.
• Establish hot link for incoming telephone
  calls.
• Forward contact list of telephone calls.

13
Voluntary Enrollment (Opt In)

• Supplier Prequalification Process
• Member ISO - NE.
• Licensed in Massachusetts.
• Currently serving retail customers in New
  England.
• Financial requirements.

14
Voluntary Enrollment (Opt In)

• Direct mail to Default Service customers
  including bill inserts.
• Co-branding of written materials.
• Earned media (joint news conference/articles).
• Devote a portion of current LDC paid advertising
  budget?
• LDC website information/links.
• Other initiatives.

15
Mandatory Enrollment (Opt Out)

• Benefits
• Helps get Massachusetts ready for the end of
  Standard Offer Service in 2005 (45 months).
• Encourages more customers to be more comfortable
  with competition.
• Encourages more suppliers to invest in
  Massachusetts.

16
Mandatory Enrollment (Opt Out)

• Propose program with extensive marketing to
  customers.
• Provide customers with predetermined period (i.e.
  months) to select a supplier.
• At end of period, randomly assign customers among
  pre-qualified suppliers.
• Allow suppliers to select rate class(es) to serve.

17
JumpStart Program

• Steven M. Rothstein
• Managing Director, New England
• AES NewEnergy, Inc.
• 617.772.7533 F. 617.772.7550
• srothstein_at_newenergy.com