NRG Regulatory Director: 'Appalled' By Retail Suppliers Operating Out of 'Basement', Wants Tougher Licensing Standard

Two large retail suppliers told the Connecticut PURA yesterday that one of the solutions to the recent tumult in the retail market is to increase the licensing standards applicable to retail suppliers.

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"Look, I don't want to disparage any other company," said John Holtz, Director of Market Development and Regulatory Affairs, NRG Energy, but, "NRG feel[s] strongly about qualifications of the companies that are entrusted to deliver electric service to customers"

Reflecting on his time as New York businesses development manager for Green Mountain covering New York City, Holtz said, "I was appalled by the fact that there were companies that were essentially operating out of a basement in one of the boroughs, and [would] hang a shingle out [saying] that they are an electric service company and have the same licensure as our company, with all of our operations, our backoffice capabilities, our hedging management, and [would] just put up a sign, hire five or six people, and go out door-to-door saying that they're an electricity supplier. That's what we got to get away from"

Christopher Kallaher, Senior Director of Government & Regulatory Affairs for Direct Energy, cited a, "lack of appropriate barriers to entry" in the Connecticut retail electric market.

"It is far too easy to come and do business in Connecticut," Kallaher said, noting that retail electricity supply is a capital-intensive business.