Ignite Market Expansion Pennsylvania Overview
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- Walter Powers
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1 POWER CENTER - Training Ignite Market Expansion Pennsylvania Overview Presentation at Houston Power Surge Saturday, October 16, 2010
2 Number of Residential Meters: 5.5 MILLION
3 Regional Surrounding States
4 Independent System Operator
5 PPL 1.4 MM Residential Meters PECO 1.5 MM Residential Meters
6 Pennsylvania Power & Light Major Cities Harrisburg Allentown 1.35 Million Customers 24.6% of total residential customers in PA Map by John Kinsworthy for Stream Energy
7 Philadelphia Electric Company Major City Philadelphia & suburbs 1.5 Million Customers 27.8% of total residential customers in PA Map by John Kinsworthy for Stream Energy
8 PPL & PECO vs. Texas PPL & PECO 3 Million Residential Electricity Meters ERCOT Just under 6 Million Residential Electricity Meters
9 PPL & PECO vs. Georgia PPL PPL & PECO 3.0 Million Residential Electricity Meters AGL 1.4 Million Residential Gas Meters
10 History of Electricity Deregulation 1996 Electricity Generation Customer Choice and Competition Act In 1998, price caps on the Utility s rate were removed for the first time In Jan 2010, PPL price caps came off In Jan 2011, PECO price caps came off PUC Commission Long term Switching Goal: 80% of residential market
11 Glossary of Terms * PA PUC thepennsylvania Public UtilityCommission EC Program Pennsylvania s Electric Choice Program for consumers Utility or Electric Distribution Co. (EDC) the transmission / distribution co. (Similar to TDSP in TX or LDC in GA) Disclosure Statement the written customer contract (Similar to TOS in TX or T&C in GA) Electric Generation Supplier (EGS) a licensed retailer in the PA EC Program (Similar to REP in TX or Marketer in GA) * See APPENDIX 1; An expanded Glossary is available in the Power Center
12 Billing model where the Competitive Marketer sends invoices to the customer and performs all implicated functions: SUPPLIER Billing Receive Payments, Issue Disconnects Reconnects Collections TX GA
13 UTILITY Billing Billing model where the Utility sends invoices to the customer and performs all implicated functions: ME Receive Payments Issue Disconnects Reconnects Collections OH PA NY NJ CT MA RI MD DE
14 TX Pennsylvania & GA -
15 Credit Checks Deposits New Service Quality Control Products & Rates UTILITY BILLING - PA Pennsylvania SUPPLIER Credit Checks Deposits New Service Meter Reading UTILITY Send Invoices Collect Payments Payment Arrangements Disconnects & Reconnects Transfer of Service Conversions Renewals Switch Prevention Winbacks Cancellations Calculate Transmission/Distribution Charge Send Invoices Collect Payments Payment Arrangements Disconnects & Reconnects Transfer of Service
16
17 UTILITY BILLING - PA Pennsylvania STREAM ENERGY Credit Checks Deposits New Service Quality Control Products & Rates Credit Checks Deposits New Service Meter Reading PPL/PECO Send Invoices Collect Payments Payment Arrangements Disconnects & Reconnects Transfer of Service Conversions Renewals Switch Prevention Winbacks Cancellations Calculate Transmission/Distribution Charge Send Invoices Collect Payments Payment Arrangements Disconnects & Reconnects Transfer of Service
18 Utilities = Our Partners
19 Utilities = Our Partners Stream Energy
20 New Service & Turn Ons The Utility handles New Service or Turn Ons EX. When a customer establishes service at a new residence for the first time Utility runs credit check at this time Utility assesses and collects deposit at this time, if necessary Transfers of Service (Move ins / Move outs) outs) fall into this category
21
22
23 Customer Bills
24 Customer Bills
25 Customer Bills
26 Customer Bills
27
28 Customer Assistance Programs CAP: Customer Assistance Programs On Track local agencies, protection from shutoffs / debt LIHEAP: Low IncomeHome Energy Assistance Program Operation HELP funded by utility customers, employees CARES conservation tips, community assistance programs If you are on one of these 4 Programs, you cannot switch to Stream.
29 Guaranteed MEI Payments The Utility handles all Disconnect and Reconnect orders Customer is at risk of disconnection if balance is 90 Days Past Due If Stream gets paid, MEI gets paid It s like having 100% of your GA/TX Customers on ACH with no late payments!
30 Commercial Coming Soon PA has a vibrant commercial electricity market Launch may follow residential launch in the near future Planning & Design already been documented Competitive Market Analysis is being conducted presently
31 Review Pennsylvania How many residential electricity meters are in the state of PA? What is the capital of Pennsylvania? What is the name of a major Pennsylvania city that is in the PPL/PECO territory? What is the name of a major Pennsylvania city that is not in the PPL/PECO territory? What state borders PA to the east? To the west? To the south? To the north? Why do suppliers often enter states utility by utility rather than an entire state at once? What is the name of the Independent System Operator that covers PA? Why did we choose to open PPL and PECO out of the gate rather than the others?
32 Review ANSWERS How many residential electricity meters are in the state of PA? 5.5 million What is the capital of Pennsylvania? Harrisburg What is the name of a major Pennsylvania city that is in the PPL/PECO territory? Philadelphia What is the name of a major Pennsylvania city that is not in the PPL/PECO territory? Pittsburg What state borders PA to the east? NJ To the west? OH To the south? WV/MD/DE To the north? NY
33 Review ANSWERS Continued Why do suppliers often enter states utility by utility rather than an entire state at once? There is no state wide entity like ERCOT in Texas where approval and successful testing allows access to all deregulated Service Areas. In the NE, a Supplier must gain approval and do testing with each individual EDC (Utility) = more expensive and time consuming. What is the name of the Independent System Operator that covers PA? PJM Why did we choose to open PPL and PECO out of the gate rather than the others? They comprise 52% of all residential customers in PA and appear to be profitable for Stream.
34 Review Pennsylvania In PA, what does EC stand for? What name does the TOS or the T&C s go by in PA? What is PA acronym is the equivalent of TX s REP? What are the names of the two primary billing models used across the country? Who mails the bill bllto the customer? Which other responsibilities do we shed when we enter a Utility Billing model? What does POR stand for? Who handles Customer Assistance Programs like budget billing or payment plans? What will trigger a Utility to issue a disconnect on a customer premise?
35 Review ANSWERS In PA, what does EC stand for? Electric Choice Program What name does the TOS or the T&C s go by in PA? Disclosure Statement What is PA acronym is the equivalent of TX s REP? EGS (Electric Generation Supplier) What are the names of the two primary billing models used across the country? Supplier Billing and Utility Billing Who mails the bill to the customer? EDC (Electric Distribution Company the Utility) Which other responsibilities do we shed when we enter a Utility Billing model? Deposits, Payments & Payment Plans, Collections, Disconnects/Reconnects, & Transfers of service What does POR stand for? Purchase of Receivables Who handles Customer Assistance Programs like budget billing or payment plans? EDC What will trigger a Utility to issue a disconnect on a customer premise? 90 days delinquent
36 Products Pennsylvania Variable Price Plan (Month-to-Month) The rate confirmed on the QC Call Cllis guaranteed dto appear on the 1 st invoice. i One Year Fixed Rate Early Cancellation Fee: $150. NOTE: One flat rate for all usage levels instead of a pricing buckets
37 New! If your Customer has not done the QC Call within 24 hours, a spaced sequence of 10 multi media reminders go out!
38 Wl Welcome Kit Pennsylvania The Enrollment transaction to the EDS triggers a USPS mailed Welcome Kit, including: Letterfrom Rob Snyder Disclosure Statement Specific Rate and Contract Info
39 - RESIDUAL INCOME Must be MD to qualify. For illustrative purposes only. Personal results may vary
40 - Back Office Customer Status New! You will have detailed information on your PA Customers in your Customer Report! Less calls to Associate Support & more timely info to help your Customer go Pending! Hovering mouse over Preverify, Pending, etc. will pop up detailed info Hovering over the words Preverify, Preverify Failure, Pending, Canceled, etc. will bring up a pop up box showing the specific reason for the status. This info will update for you as your Customer progresses through the on boarding process. Enrollment Accepted = Pending = $ The main thing you need to know, at this point, is that your Customer will not show Pending status until Stream receives back Enrollment Accepted from the Utility. This will trigger Bonus payments. We plan to bring this improvement to GA & TX Customers in the near future!
41 APPENDIX 1 Market Overview GLOSSARY * Key Terms * Also see PA FAQs in your Power Center/Support
42 Basic Services: These are the services necessary for the physical dli delivery of electricity i to customers; including generation, transmission and distribution. The monthly Customer Charge and the Temporary Transition charge examples of basic service charges to the customer by the EDC. Customer Charge: Part of the monthly basic distribution charge to partially cover costs for billing, meter reading, equipment, service line maintenance and equipment. This charge is a flat rate no matter how much electricity is used. 42
43 Consumer s Dictionary for Electrical Competition: The Pennsylvania Public Utility Commission s s official Dictionary of terms used in the competitive electricity market. Some of these terms are included in this Glossary. Please use this link to review all of the terminology: ric/electric_competition_dictiona ry.aspx yasp Customer Disclosure: A contract between an Electric Generation Supplier (Stream Energy) and a customer that outlines the terms and conditions of service (i.e., length of term, fees, etc.) Electric Generation Suppliers must provide this disclosure to all customers at time of enrollment. To assure receipt of this, Stream Energy sends this to the customer at the completion of the Quality Confirmation Call. 43
44 Deregulation: Removal or relaxation of regulations or controls governing a business or service operation such as utilities. Distribution: The local wires, transformers, substations and other equipment used to deliver electricity to end use consumers from the high voltage transmission lines. 44
45 Distribution Charges: Part of the basic service charges on every customer s bill for delivering electricity from the electric distribution company to their home or business. The distribution charge is regulated by the Public Utility Commission. This charge will vary according to how much electricity you use. Early Cancellation Fee (ECF): The fee Stream charges when a customer on a Fixed Plan terminates service prior to the end of their contract. This ECF is stated in the Customer Disclosure. When Stream offers a Fixed Plan, a strip of electricity is purchased at a wholesale rate to support the retail price charged to the Customer. When a customer terminates their Fixed Plan Agreement with Stream early, Stream is still liable to purchase their electricity at that rate, and, therefore, charges an ECF to offset this liability. 45
46 Electric Choice (EC) Program: The Pennsylvania Electric Choice Program is the PUC approved program which supports customer choice of Electric Generation Supplier (EGS) in both the residential and commercial/industrial sectors. Presently Stream will only be allowing IAs to market ktin the Residential portion of the EC Program. Electric Distribution Company (EDC) The company (Utility) that owns the power lines and equipment necessary to deliver purchased electricity to the customer. Unlike the TX and GA markets, in Pennsylvania, the Utility is our Partner since they will usually do ourbilling Billing, collections, andare are our Customer s Primary Customer Care contact. In Pennsylvania, we will be initially be marketing in the PPL and then the PECO Utility Service Areas. We hope to open up other Utilities as the PA market matures. 46
47 Electric Generation Supplier (EGS) The licensed competing retail electric provider (ex: Stream Energy) in the PA Electric Choice Program. Fixed Price A price which remains the same, usually for a set time period. Stream s Local Office in PA: Stream Energy Pennsylvania, LLC 1500 Market Street, 12 th Floor, East Tower Philadelphia, PA Local:
48 Generation: Generation Charge: The production of Part of the basic service electricity, in Pennsylvania, charges on every is produced by a number of customer s bill for methods including natural producing electricity. Generation service is gas, coal, nuclear power, competitively priced and is wind, water and solar not regulated by the Public energy. The generation of Utility Commission. This electricity is deregulated. d charge depends on the contract between the customer and the supplier. 48
49 Grid: A network for the transmission of electricity throughout the state, region or nation. The term is also used to refer to the layout of an electric distribution system. (See PJM) Kilowatt hour (kwh): The basic unit of electric energy for which most customers are charged in cents per kilowatt hour. A unit of energy equal to one kilowatt (kw) of power expended for one hour of time. The amount of electricity used each billing period is expressed in terms of a kilowatt hour and is noted on your bill. 49
50 Population Center Terminology: PennsylvaniaLawdefines four Town: there is only one official town types of incorporated in PA: Bloomsburg Township: Townships are subsections municipalities within the of counties and can contain boroughs County: cities, boroughs, and cities but have their own townships, and a single official town : governance and are counted separately by the census. [There are City: 56 population centers officially termed cities ranging from million population Borough: approximately 950 population centers historically referred to as boroughs ranging from < = 200 up to ~ 35,000 with the defining characteristic of not having a municipal structure a good number of duplicate names so you have to be sure if somebody's talking about the city, borough or township (or unincorporated village).] There are over 1500 townships that are divided into first class and second class townships according to population density. 50
51 Price to Compare (PTC): Kilowatt hour amount a consumer uses to compare prices and potential savings among generation suppliers. The Utility s PTC will be updated Quarterly starting in Provider of Last Resort (POLR): The company providing generation services to those who do not choose another supplier, are unable to find a supplier willing to serve them or for some reason no longer receive generation services from another supplier. 51
52 PublicUtility Commission (PUC) of Pennsylvania: The Pennsylvania Public Utility Commission is the state regulatory agency thatprovides oversight, policy guidance and direction to electric public utilities. The PUC regulates the delivery of electricity and enforces customer protections. ti 52
53 PJM Pennsylvania New Jersey Maryland (PJM) Interconnection Independent Service Operator (ISO) Pennsylvania is part of the PJM electric Grid. It is a Regional Transmission Organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia. Acting as a neutral, independent party, PJM operates a competitive wholesale electricity market and manages the high voltage electricity grid to ensure reliability for more than 51 million people. PJM is interconnected to other ISOs and is bordered on 3 sides by NY ISO [to the North], Midwest ISO [to the West], and SE Reliability Council (SERC) [to the South]. PJM is like ERCOT (in Texas); however, ERCOT is not interconnected to other ISOs.
54 Quality Confirmation (QC) Call: A required call that all Customers must complete to enroll for service with Stream Energy. It is critical that Independent Associates inform their Customer that the Quality Confirmation Call must be made as soon as possible to complete enrollment. This QC Call must be made only by the Customer. If the Customer has not called the QC number within 24 hours, a series of calls and s from Stream Energy will automatically ensue over the next few days to make certain the Customer completes their enrollment. The Customer s completed request for service will be submitted to the Utility 24 hours after the QC Call is completed. In the Pennsylvania market, the Customer will not have a credit check. For the Customer s protection against slamming he/she will be requested to provide his/her last four digits of their Social Security number, along with other identifying information. 54
55 Slamming: Switching electric service without a customer's approval. This practice is illegal and penalties are enforced by the PUC. Ignite has a zero tolerance Policy towards slamming and is a terminable offense (see your Policies and Procedures Manual in your Power Center). Transmission Charges: Part of the basic service charges on every customer s bill for transporting electricity from the source of supply to the electric distribution company. The Federal Energy Regulatory Commission regulates retail transmission prices and services. This charge will vary with your source of supply. 55
56 Variable Price: A price which can change, by the hour, day, month etc. Stream s Variable Plan(s) usually readjusts on a monthlybasis in response to the energy market. 56
57 APPENDIX 2 Power Center Customer Listing PA Status Codes Detailed ddescriptions i of what will appear in the pop up box when the mouse is hovered over Preverify, Preverify Failure, Pending, etc.
58 APPENDIX 2 PA Back Office Customer Status Codes Hovering mouse over Preverify, Pending, etc. will pop up detailed info Lines not applicable to PPL & PECO market Enrollment Accepted = Pending = $
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