Integrys Energy Services Assumes Responsibility for Competitor's Retail Customer Book

An Integrys Energy Services company has assumed responsibility for serving a customer book of retail natural gas customers in Maryland.

Specifically, Pepco Energy Services, Inc. (PES) informed the Maryland PSC that it had entered into an agreement with Integrys Energy Services - Natural Gas LLC, whereby Integrys Energy Services - Natural Gas LLC, "will serve as the authorized agent for all matters relating to the supply of natural gas to PES customers throughout the remaining term of the existing customer contracts."

"As PES' agent, Integrys Energy Services will be the provider of natural gas supply, nominating, balancing and scheduling services, as well as billing and customer service," PES said in a notice to the Maryland PSC.

Pepco Energy Services also said that it would "oversee" the performance of Integrys Energy Services - Natural Gas LLC in acting as PES' agent.

Pepco Energy Services has been unwinding its retail supply contracts over the past few years as part of a previously reported exit from the competitive supply business. Typically, this has included the natural roll-off of contracts rather than the transfer of customers (or responsibility for supply functions) to another supplier. According to its website, Pepco Energy Services has contracts, "that extend well into 2014."

As of April 1, 2013, Pepco Energy Services was serving 29 natural gas customer contracts in Maryland. All of the contracts are with commercial and industrial customers, and all of the contracts expire by the end of December 2013.

Through the remaining contract term, PES said that these customers are expected to use approximately 214,500 dekatherms of natural gas

In a statement to Energy Choice Matters, Pepco Energy Services (PES) said the following:

"On March 21, 2013, Pepco Energy Services entered into an agreement whereby a third party assumed all the rights and obligations of the remaining retail customer contracts, the associated supply obligations, gas inventory and derivative contracts associated with Pepco Energy Services’ retail natural gas supply business. Pepco Energy Services completed the transaction on April 1, 2013."