Energy Markets in Turmoil The Consumer Perspective Sonny Popowsky Consumer Advocate of Pennsylvania Illinois State University Institute for Regulatory.

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Energy Markets in Turmoil The Consumer Perspective Sonny Popowsky Consumer Advocate of Pennsylvania Illinois State University Institute for Regulatory Policy Studies Springfield, IL May 17, 2001 PA Office of Consumer Advocate 555 Walnut Street Forum Place, 5 th Floor Harrisburg, PA (717) Telephone (800) (PA Consumers toll-free) Ž

Pre-Merger National League Standings 2000 Season W L PCT GB Braves Mets Marlins Expos Phillies W L PCT GB Cardinals Reds Brewers Astros Pirates Cubs CENTRALEAST ppt

Post-Merger National League Standings May 10, 2001 W L PCT GB Phillies Braves Marlins Mets Expos W L PCT GB Cubs Astros Cardinals Brewers Reds Pirates CENTRAL EAST

“Among states where deregulation has occurred, Pennsylvania has emerged so far as the place where the promises of competition and lower prices are being met most successfully.” New York Times, “A Dwindling Faith In Deregulation”, September 15, ppt S2

The Most Important Provisions In The Pennsylvania Electric Restructuring Law 1.The Rate Cap Provision 2.The Rate Cap Provision 3.The Rate Cap Provision

Retail Competition Actually got off to a Reasonable Start in Pennsylvania

1.8 million consumers volunteered for the 230,000 slots in the competitive pilot

Includes 253,253 customers of New Power under Competitive Default Service

July 2001?

Price per kWh 500 kWh 1000 kWh ppt October1, 2000

Price per kWh 500kWh 1000 kWh April 2001

Actual Usage and Savings for PPL Residential Customer, All-electric Home Switched to Utility.com Months in year 2000 Usage in kWh per month PPL Generation & Transmission Utility.com Generation & Transmission Savings February2543$112.57$94.19$18.38 March April May June July August Totals$515.46$423.01$92.45

Competitive Residential Electric Price Components - Cents per kwh Electricity & Capacity = = = 6.00 Losses (10%) Wheeling.150 Billing, etc..500 EDI & IT.200 Security Pmt Admin..350 Profit.200 Billed Amt

PA Gas Switching Statistics as of 04/01/01 Company Total Residential Customers Residential using Alternative Suppliers Columbia355,25694,466 Dominion-Peoples325,146110,399 Equitable241,69918,900 NFG200,2110 PECO399,3160 PG Energy139,0220 PPL65,2810 T W Phillips54,7230 UGI249,7620 Valley Cities-NUI4,4120 Total2,034,828225,765

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