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PSC Staff Recommend This Retail Supplier Be Selected For State-Endorsed Opt-In Aggregation Program

April 18, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Staff of the Delaware PSC have recommended that the state's Electricity Affordability Committee select a proposal from Direct Energy to conduct an opt-in aggregation, or affinity, program

As previously reported, the Delaware Secretary of State issued a request for proposals for a retail electric supplier to supply an opt-in electric supply program to residential and small business customers that includes the potential benefits derived from a combination of a multi-year fixed price per kWh offer, value added products and services to help customers better manage their overall energy bills, and other potential consumer benefits.

Click here for background on the opt-in affinity program

As part of the program, the State of Delaware Secretary of State will permit the successful offeror to market their supply product offering as "Approved by the State of Delaware" or "Certified by the State of Delaware", and, "as a special electric supply product offering for Residential and Small Commercial customers", or with similar wording as may be approved by the Secretary of State.

PSC Staff reported that 6 proposals to supply the program were received, from Agera Energy, Champion Energy Services, Constellation NewEnergy Inc., Direct Energy, MidAmerican Energy Services, and NRG Home.

Staff said that the top two vendors based on Staff’s evaluation and ranking, using the criteria set forth in the RFP, were Direct Energy and Constellation NewEnergy.

Staff said that there was a, "clear delineation between the top two (2) proposals received and the others."

Staff recommended selection of Direct Energy for the affinity program, if the Committee elects to move forward with the program

"Based on the findings during the proposal evaluation and review process, PSC Staff recommends that, if the Committee agrees to move forward with this program, the Committee accept the proposal submitted by Direct Energy. Direct Energy has been involved in many aggregation programs in other states and jurisdictions. They also have extensive experience and currently operate within the State of Delaware offering residential and non- residential commodities. It is PSC Staff’s opinion that Direct Energy’s past experience in aggregation programs, its current working relationship with Delmarva customers, its innovative plan, and the overall value of the fixed price offerings, added products and services, and other potential customer benefits make it the most qualified and prepared supplier to most effectively implement and carry out the requirements of the Opt-In Electric Supply Program as set forth by Senate Substitute No. 1, House Bill 160, FY2016 Bond and Capital Improvements Act of the State of Delaware, Section 68," Staff said

The specifics of Direct's specific proposal, and the other five proposals, were redacted in Staff's recommendation. Details of an earlier proposal made by Direct Energy to supply the program prior to the issuance of a formal RFP can be found here

The Electricity Affordability Committee is to consider Staff's recommendation at a meeting this Friday.

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