Superior Plus Applies for Pennsylvania Electric License

Superior Plus Energy Services LLC applied for a Pennsylvania electric generation supplier (EGS) license to serve all customer classes, including residential customers, in all service areas.

The application is the first tangible evidence of Superior Plus' previously reported intent to expand the marketing of its fixed price energy contracts into the U.S. In some jurisdictions where Superior has acquired U.S. fuel oil or propane customers, license applications are not publicly docketed (such as New York).

As only reported in Matters, Superior said that its 2009 purchase of certain assets of Griffith Energy Services, a fuel marketing and HVAC/energy contracting business, would provide it with the opportunity to offer the acquired heating oil and propane customers fixed price contracts for electricity or natural gas.

The Griffith Energy Services asset purchase included customers in Pennsylvania (mainly the Philadelphia area), Connecticut, and Rhode Island. The Griffith Energy Services business consists of approximately 90% residential customers and 10% commercial customers.

In January 2010, Superior also acquired Griffith Holdings, Inc., a retail and wholesale distributor of retail propane, heating oil, and motor fuels in upstate New York.

In particular, Superior has cited the commercial retail electric market in the Northeast U.S as an area expected to provide growth opportunities for its fixed-price energy services, with the segment's gross profit projected to modestly increase for the years 2010 and 2011.

See prior coverage on 5/6/10, 2/22/10, 11/6/09, and 11/5/09.

Superior Plus said in its Pennsylvania application that it would utilize door to door sales in its marketing (apart from cross-selling to heating oil and propane customers), and would utilize both internal employees and an external, non-EGS sales force in its marketing.