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Direct Energy: Retail Choice in Mid-Atlantic "Stable, Growing" From Regulatory, Legislative Perspective, Prompts Investment From Suppliers (Compare To Other Parts Of U.S.)

August 25, 2016

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

Direct Energy is currently heavily active across the Mid-Atlantic in expanding the benefits of retail choice to customers, as the Mid-Atlantic now stands in stark contrast to other neighboring markets

Just this week, Direct Energy has proposed a move to a retail SOS model in the District of Columbia, and is seeking a judgment concerning competitive retail electric service in Virginia.

This follows the successful creation of a state-endorsed retail opt-in affinity program in Delaware, which Direct Energy won the right to supply via RFP. Direct Energy is donating $5 per online enrollment ($2.50 for offline enrollments) under the program, plus an initial $10,000 contribution, to the Ronald McDonald House of Delaware.

Even though a single supplier was selected for the Delaware affinity program, the state's receptiveness to retail competition has prompted more retail suppliers to enter the Delaware residential market, which is also poised to implement additional retail market enhancements, such as POR.

Direct Energy has also supported legislation to direct Maryland regulators to undertake a study of a state-endorsed affinity program similar to the Delaware program (though the legislation did not pass, the PSC indicated it would still study the issue and issued an RFP for assistance with such study)

And of course there is Pennsylvania, which, having rolled out the welcome mat for retail suppliers several years ago, has seen suppliers launch new and innovative electricity products which meet customers' needs. EnergyChoiceMatters.com independently notes that such innovative retail supplier plans also align with the stated public policy goals of certain Public Service Commissions, such as peak load reduction and conservation (e.g. through time-based rates).

Direct Energy itself launched its Free Power Day product in Pennsylvania before any other market (initially free Saturdays but now free weekends), and has since supplemented its Pennsylvania offerings with a Free Nights plan and a two-tier simple TOU plan. Direct and other retail suppliers in Pennsylvania offer free smart thermostats bundled with their Pennsylvania offerings (smart thermostats having been shown to result in customer conversation), and other retail suppliers in Pennsylvania have implemented other dynamic rate plans, such as critical peak rebates

Discussing all these recent developments in the Mid-Atlantic, Ron Cerniglia, Director of Government and Regulatory Affairs for Direct Energy, told EnergyChoiceMatters.com, "The Mid-Atlantic region is relatively stable and growing from a regulatory and legislative perspective, compared to other parts of the country, so we're always looking to expand in those types of areas."

In written comments in the D.C. SOS proceeding, Direct Energy expounded on the community investment that can be unlocked by embracing retail choice.

"If DC were to take the next logical step to restructure its market, a retail SOS, it would unleash significant capital investment from the retail electricity community and would provide sufficient forward momentum to enable the development of a robustly competitive retail market in the District. As a result, new products and innovations would likely be offered in the District, as has been witnessed elsewhere. Jobs would likely be created. Investments would be made on advertising and other business services. Innovation would flourish and customer satisfaction with electricity service would increase. DC can benefit from the steps already taken in other states by sending the signal to the competitive electric community that DC is truly 'open for business.' Major research and development investments have been made in states that have more fully opened or are larger (e.g., Texas and Pennsylvania). These types of investments can be easily transferred to DC if there is a sincere commitment to competitive electric markets in the District," Direct Energy said

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