Crius CEO: Municipal Aggregation Is "Wave Of The Future"

"I'm a big believer that community choice aggregation is the wave of the future," for mass market customers, Michael Fallquist, Chief Executive Officer at Crius Energy, told attendees at DNV GL's Energy Executive Forum which was held last week

During a panel on customer focus and engagement, Fallquist said of municipal aggregation, "We think it is the wave of the future, because you are effectively creating collective bargaining power for individual residential customers, which ultimately will create more value, I think there's ways to enhance it by allowing retailers to engage more with customers."

"I think you'll see more programs, not less programs, over time," Fallquist said of municipal aggregations

Crius has been an active supplier in serving municipal aggregations, among its suite of sales channels

Fallquist expects that competition to supply municipal aggregations will increase over time, and said that Crius is using the current period of time, where there is less competition for deals, to understand risks and pricing for aggregations.

"Because there's a lot of risk in these aggregations. They're low margin, customers come on and come off, but ultimately we as a company want to understand those risks, so as we move forward in the next three to five years, when there's more community choice aggregation and there's more co-op type strategies, we understand what the risks are, so we can ultimately price that appropriately, provide the best products, and get the best return for our shareholders," Fallquist said