North American Power Eyeing Launch of Gas Marketing in Three States in Early/Mid 2012

North American Power intends to launch natural gas service in three states in the early to middle part of next year, as it named Paul Rossi as Vice President of its new natural gas division.

Bill Kinneary, President of North American Power, said that North American Power will soon be applying for gas licenses in New York, New Jersey, and Ohio and intends to begin operations in each state during the first through third quarters of next year.

Kinneary noted that North American Power's prioritization of gas market entry is still subject to change.

As an aside, Kinneary also said that North American Power expects to begin marketing electric service at Commonwealth Edison in the first quarter of next year, as North American Power received its supplier license last week (see related story)

The initial gas markets were chosen for, among other reasons, expectations that North American Power's network sales model would thrive in each market, and due to North American Power's existing electric service in these markets (North American Power actively serves electric customers in New York and New Jersey, and is awaiting certification in Ohio).

Kinneary said that offering customers dual commodity service will increase win rates while reducing churn, by offering additional value to customers.

Kinneary reported that North American Power has no definitive plans at this time to offer a "green" natural gas product, but has an open mind regarding the use landfill gas or carbon offsets to "green" its gas offering.

Rossi, who was named Vice President of North American Power's gas division, was formerly director of U.S. Natural Gas Commodity Operations for UBS Investment Bank, with 32 years of experience in the energy industry, including wholesale and retail energy commodities and regulated utilities. Rossi has served as manager of regulatory affairs for UIL Holdings Corp., including its principal operating subsidiary, The United Illuminating Company, and has served as director of natural gas supply for Southern Connecticut Gas Company.

North American Power also named Matt Redett as its new Chief Financial Officer. Most recently, Redett was Director of Finance for Gamesa Energy USA. Redett had previously served as Director of Finance and Operations at Juice Energy, and as Director of Finance and Operations for the New York and Mid-Atlantic regions at Constellation NewEnergy. While at NewEnergy, he was also Controller of Wholesale Supply and Trading.