Ohio Electric Consumers Risk Higher Electricity Prices With Utility Re-Regulation, Says National Energy Marketers Association

The National Energy Marketers Association (NEM) supports Governor Ted Strickland’s call for both energy conservation and energy security. “However, Ohio consumers have no incentive to save energy without competitive pricing options. Under the new legislation as proposed (Senate Bill SB221) Ohio consumers may never benefit from electricity competition,” said Craig Goodman, President of NEM.

“NEM urges the Governor, the legislature and the Public Utility Commission to implement policies that allow for the development of competition as they restructure Ohio’s electric market,” said Goodman. “Given the success Ohio natural gas consumers have experienced, it would be a missed opportunity not to incorporate some further development of the competitive electricity market into the recently proposed SB221. Competitive markets can help deliver on the Administration’s goals and comprise more than just commodity sales. On-site renewable energy and demand side management programs are two such examples.”

Goodman, a former energy policy official in the Reagan and first Bush Administrations, “urges the Governor to consider energy security and technology policies that would bring the discipline of competition to energy markets, enhance the reliability of the electric grid and ensure that more competitive suppliers will enter the market to serve Ohio consumers.

“The development of robust competitive electricity markets, incentive regulations to upgrade electric utility infrastructure, on-site generation and demand side management are the best ways to deliver more reliable and secure electric service to Ohioans,” said Goodman.

Ohio has led the United States for many years with its visionary model of bringing the benefits of energy choice to natural gas consumers.

“There is evidence from public and private sources that energy competition is yielding both the pricing and product innovation benefits envisioned at the inception of restructuring. A recent federal government report reveals that retail natural gas marketers consistently beat utility pricing in virtually every month between 2002-2005 in Ohio, as well as other surveyed states. NEM members deliver these price savings to Ohio natural gas consumers as well as value-added products and services,” said Goodman.

“Ohio gas consumers have enjoyed shopping for competitive gas supplies for over a decade. Today nearly half of all eligible Ohio consumers have chosen a competitive option for natural gas. Electricity consumers deserve no less,” said Goodman.

About NEM

NEM is a national, non-profit trade association representing wholesale and retail marketers of natural gas, electricity, as well as energy and financial related products, services, information and advanced technologies throughout the United States, Canada and the European Union. For information on NEM membership call (202) 333-3288, or contact NEM via its Web site at www.energymarketers.com.