Decade of Retail Electricity Competition in Illinois
Yields Estimated Customer Savings in Excess of $1 Billion
Nearly 75 Percent of Non-Residential Customers
Statewide Served by Robust Competitive Power Market
CHICAGO,
Oct 01, 2009 (BUSINESS WIRE) -- Constellation NewEnergy, a subsidiary of
Constellation Energy (NYSE: CEG), said today the retail electricity market in
Illinois, celebrating its 10-year anniversary this month, is among the most
robust nationwide, delivering millions in savings to energy consumers
annually and estimated customers savings in excess of $1 billion the past 10
years.
A
market participant since the opening of retail competition Oct. 1, 1999,
Constellation NewEnergy today is the retail leader in Illinois and
nationwide, serving more than 2,500 customers in the state's private and
public sectors. The company said spirited competition among dozens of active
retail energy suppliers has driven innovation and efficiency in Illinois'
energy sector, and continues to deliver savings, an array of choices and
customized energy solutions to the state's business and public sector
community.
In its
2009 Retail Market Development Annual Report, the Illinois Commerce
Commission found that competition is on the rise in utility territories
across the state, with approximately 73 percent of non-residential users (see
graphic) and more than 90 percent of large industrial and public sector
energy users shopping with a competitive supplier. Competition is spreading
steadily to smaller, non-residential electricity users as well.
"The
Illinois General Assembly and the Illinois Commerce Commission deserve a
great deal of credit for putting the state on a path toward competition, and
working diligently through the years to address the challenges and
complexities of building a robust retail electricity marketplace," said
David I. Fein, Constellation Energy's vice president of energy policy in the
Midwest and its director of retail energy policy. "The retail
electricity market in Illinois is a great example of a well-functioning
competitive retail market; the power of choice is helping the state's leading
public institutions, including schools, universities, hospitals and
government agencies, and private sector businesses and manufacturers, achieve
considerable savings on electricity costs. In the midst of a deep recession,
these savings are critical. Illinois' progressive and forward-thinking retail
energy policy is helping the state's employers, large and small, preserve
existing jobs and create new ones."
"Illinois'
energy market has matured considerably, and we're able to provide customers
with products and solutions, from real-time energy monitoring to renewable
energy credits, that were unheard of in the days of regulated electricity
monopolies," said Michael Kagan, president, Constellation NewEnergy.
"Thanks to competition, our customers in Illinois do much more than buy
a commodity. They have access to online management tools, market analysis and
seasoned energy professionals...everything they need to develop and manage a
sophisticated energy portfolio."
Before
the advent of competitive energy markets, news reports highlighted instances
when private enterprise threatened to relocate from Illinois to nearby states
to save on electricity costs. Today, Illinois businesses have a more level
playing field, built on a healthy, competitive energy marketplace.
"Electricity
is a significant cost component for virtually all Illinois
manufacturers," said Greg Baise, president and CEO, Illinois
Manufacturers Association. "The ability to find innovative, tailored
solutions in partnership with other businesses, rather than remaining captive
to utilities as a ratepayer, has been an important cost-saving mechanism for
Illinois manufacturers in the past 10 years. As the energy market continues
to evolve, we expect the benefits to grow. This assistance is essential in
trying economic times."
Constellation
Energy's estimated 10-year retail customer savings in excess of $1 billion is
based on the minimum realized savings for Illinois business customers
relative to the utility tariff rates for bundled service frozen under Choice
Law through December 2006, as further adjusted to take into consideration
additional assumptions such as switching incentives, intensity of competition
and variety of new products offered.
About
Constellation NewEnergy
Constellation
NewEnergy (www.newenergy.com) is a leading competitive supplier of
electricity, natural gas and energy-related services to commercial,
industrial and institutional customers throughout the United States. A
subsidiary of Constellation Energy (NYSE: CEG), Constellation NewEnergy
operates in all competitive energy markets throughout the U.S., providing
products that enable customers to effectively manage and control energy
costs.
About
Constellation Energy
Constellation
Energy (www.constellation.com) is a leading supplier of energy
products and services to wholesale and retail electric and natural gas
customers. It owns a diversified fleet of generating units located throughout
the United States, totaling approximately 9,000 megawatts of generating
capacity, and is among the leaders pursuing the development of new nuclear
plants in the United States. The company delivers electricity and natural gas
through the Baltimore Gas and Electric Company (BGE), its regulated utility in
Central Maryland. A FORTUNE 500 company headquartered in Baltimore, Constellation
Energy had revenues of $19.8 billion in 2008.
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SOURCE: Constellation Energy
Constellation Energy
Media Contacts:
Lawrence McDonnell orAaron Koos, 410-470-7433