Interstate Gas Supply, Inc. (IGS Energy®) November 13, 2007

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Presentation transcript:

Interstate Gas Supply, Inc. (IGS Energy®) November 13, 2007 Evolving Roles and Responsibilities of Gas Utilities in Today’s Markets Interstate Gas Supply, Inc. (IGS Energy®) November 13, 2007

IGS Energy’s Role Evolving Natural Gas Market IGS Energy Background IGS Energy Participation in Choice Programs Role of the Natural Gas Suppliers in Open Markets Other Products and Services

IGS Energy Background

IGS Energy Background IGS Energy is a privately held company. Dublin, Ohio based IGS Energy serves @ 670,000 natural gas customers in Ohio, Michigan, Illinois, Kentucky, New York and Pennsylvania. IGS Energy began in 1989, founded by Marv and Scott White. Scott White continues today as President and CEO. IGS began as a Commercial & Industrial Supplier. Through the development of Ohio’s Choice Program, IGS moved into the residential and small commercial space beginning in 1999. Today, IGS focuses on natural gas products and services, with its primary focus on residential customers.

IGS Energy Timeline 1989 Company formed, C&I supply programs in Ohio 1999 Ohio developed Choice Program, Columbia Gas of Ohio and DEO 2000s Ohio (COH, DEO, VECTREN, Duke) Michigan (MichCon, Consumers) Illinois (Nicor) Kentucky (CKY) Pennsylvania (CPA) New York (National Grid, Central Hudson) 2006 Warranty Company, The Manchester Group, started Provides utility line warranty products throughout Midwest

Contact Us Terms of Use Privacy Policy

IGS Energy’s Role Choice Programs

Customer is the focus Customers are at the center Utility, Commission and competitive suppliers all have a role Commission oversight, arbiter, and final word Utility focus on pipes and system service Competitive Suppliers on commodity supply and customer service

Competition Continued As competitive markets develop, customers begin to drive demand which translates into a greater array of offers from competitive suppliers, with more diversity of offers Duration of the product, month to month, short term (typically under 6 months) longer term (12 months up to 5 years) Variety with respect to pricing, variable, fixed, summer, winter, guaranteed savings, caps, collars and other products

IGS Energy’s Role IGS believes that as competitive natural gas markets continue to develop for the residential and small commercial customers, involvement of competitive natural gas suppliers can help create a paradigm that enables customers to capture the benefits of open markets. IGS’ involvement is both independent and also through group activities.

Energy Choice Groups Ohio: Ohio Gas Marketers Group (OGM) New York: New York State Energy Marketers Coalition (NYSEMC) Illinois: Retail Gas Suppliers (RGS) Michigan: ad hoc group Pennsylvania: ad hoc group, active in S.E.A.R.C.H. process IGS Participates in various energy groups. Group efforts are most pronounced in Ohio, Illinois and New York. Purpose of a group effort is to work through the regulatory process to evaluate programs and offer suggestions, when appropriate, to level the playing field between Choice and Sales. Main goal is to create parity between programs. With parity, competitive natural gas markets are successful.

Choice continued In Ohio for example, OGM has been involved in DEO Auction process, both Phase I and II, as well as other stakeholder processes, regulatory initiatives (including rate cases and MP Audits) Group involvement permits the groups to focus the Choice issues, and provide (at times) cohesive feedback and positions In Ohio the result has been advancement of the competitive market through equity, providing increasing benefits to consumers

Ohio Gas Choice Program Competition is vibrant in Ohio, with strong switching rates for natural gas: DEO @ 70% COH @ 47% Vectren @ 30% Duke @ 27%

Innovation Because of the strong competitive market in Ohio, IGS began looking for new and unique ways to differentiate itself from the competition and provide benefits to customers

Home Warranty Products Home line warranty products became part of the IGS product offering as a means to differentiate itself and add value to customers

Home line warranty Additional value added feature that is only available from IGS as a result of the continuing development of competitive natural gas markets and its involvement as a choice supplier in those markets.

Contacts For more information contact: Vincent A. Parisi (614) 734-2649 vparisi@igsenergy.com