EnergyWindow MarketElert ^TM - March 2004
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March Elerts

	Detroit Edison - In a move that has drawn immediate negative reaction from competitive electric suppliers and their customers, the PSC approved on February 20th Interim Rate Relief that added approximately 1.2 cents per kWh for primary accounts and 1.4 cents for secondary accounts > 15 kW that have switched to competitive suppliers. This rate relief will be finalized this summer, with adjustments possible in either direction. Further information is available at Michigan PSC Interim Relief Order.
	California - All Direct Access (DA) accounts that returned to tariff after September 20, 2001 must enroll through an ESP by April 19, 2004 or return to tariff for a three year period. See California Switching Exemption Rules for full details, including future switching rules and restrictions.
	Virginia - On March 10, the Virginia House of Delegates passed Senate Bill 651 which extends Dominion Virginia Power's capped rate period through 2010 and provides the opportunity for customers to avoid the wires charges before they end on July 1, 2007. The Bill now goes to the Governor for his signature.
	New Jersey - New BGS rates are posted and expected to be approved as presented. Shopping credits are generally higher in the summer and slightly lower in the winter months. See www.bgs-auction.com for more.

High Markets Spawn Spate of Products

With wholesale gas and electric prices as high as they are now, competitive suppliers are having a hard time offering attractive energy pricing. These higher cost times also result in increased creativity among sales forces being pressed to keep up their sales volume. One way this creativity manifests itself is through the appearance of numerous products that are designed to attract customers, even during high wholesale periods. Some of these products are simple, others more complex, but all come with a mix of value and risk that needs to be understood by those being asked to commit to them. Read in greater detail about both the advantages and disadvantages of the commodity products listed in the table above by clicking here.

Product Description Pro Con Longer terms Extended terms in backwardated markets Lower initial price Long-term commitment Shorter terms Less-than-annual terms leveraging seasonal opportunities Higher short-term savings Frequent shopping, low supplier interest Indexed rates Variable prices based on wholesale prices Possible lower rates than fixed Exposure to market volatility Variable to Fixed Indexed until fixed in favorable markets Holds options open No guarantee markets will turn Blend and extend Mix current and forward prices over longer term Lower current price Long-term commitment Right to serve Supplier option to serve at a specific price and time Pre-arranged deal possible Supplier can back out or markets drop Market watch Customer obligation to buy if a declared price can be met Price certainty if struck Lost opportunity if price cannot be met

Quick Buyers' Tip
Allow plenty of time for shopping when contracts are nearing an end. In addition to the time it takes to receive and analyze offers, your current supplier may require notice if you intend to depart their service (typically 30-60 days). Utilities also have deadlines to process switches, sometimes 17-20 days. Also leave enough time for contract negotiation and for suppliers to process the transfer. Double-check with suppliers and the utility for timeframes and potential back-to-tariff issues when making plans to shop.

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