Diversified Energy Supply Starting Retail Supplier

Wholesale power and gas marketer Diversified Energy Supply is launching a new retail energy supplier to market natural gas and electricity

Subsidiary DES Retail, LLC recently received FERC market-based rate authority, and has obtained credit agreements and developed a backoffice. Retail service is targeted to begin at the start of 2013.

Fernando de Aguero, President of Diversified Energy Supply, said that the new retail supply subsidiary was developed in response to the needs of existing wholesale clients, who have meters behind city-gates, or on the local distribution system, that require a retail license.

However, DES Retail will not limit its marketing to existing wholesale clients, and will broadly serve commercial, industrial, institutional, and governmental customers. DES Retail will serve residential accounts in connection with its non-residential service, but does not anticipate a mass marketing residential effort.

Diversified Energy Supply's wholesale footprint is national, and the retail footprint will have a similar reach. In particular, Aguero cited the Northeast, Texas, Georgia, and California as key retail markets for the company.

Diversified Energy Supply is certified as a minority business enterprise by the National Minority Supplier Development Council.

San Diego Gas & Electric recently confirmed that it successfully completed three short-term power purchase agreements with Diversified Energy Supply. The wholesale power purchases represent approximately two percent of monthly electricity sales to SDG&E customers, and were conducted in response to PUC general order 156.

"These three power purchase agreements with Diversified Energy Supply represent a significant milestone for SDG&E, as they are the first electric procurement transactions SDG&E has completed with a minority-owned business," said Matt Burkhart, SDG&E's vice president of electric and fuel procurement.