DEREGULATION

1. BEFORE DEREGULATION

LDC•Supplier & local utility•One company (Monopoly)•No alternatives for consumers

2. AFTER DEREGULATION

Customers chooseA generation

supplier

LocalUtility

CompanyDirectEnergy

DEREGULATION

What is a Local Utility Company?

• Provides consolidated billing• Reads Meters• Delivers Gas & Electric• Handles Emergencies

Local Utility

ConEdisonPSE & G

Central HudsonOrange & Rockland

3. AFTER DEREGULATION

What is Direct Energy?•Direct Energy is a supplier to ConEd, or the local utility.•Suppliers purchase energy off of the wholesale market.•Direct Energy, and other suppliers, supply the commodity to the LDC (or local utility) to distribute.

WHO IS DIRECT ENERGY?

Direct Energy is a leading North American supplier of energy and related services for residential and business customers.

Backed by Parent Company: Centrica Direct Energy, partnered with Centrica, provides energy services through

more than 32 million customer relationships worldwide. Over 34,000 employees worldwide Largest commercial and industrial retailer in North America based

on customer numbers. Direct Energy’s Mission Statement: We will create value for our

shareholders and customers by being the provider of choice for energy and related services to residential, commercial, and small industrial customers in selected North American markets.

 

Simple. Friendly. Direct.

Business Owners Have The Power To Choose

Benefits of The Power to Choose:

Multiple suppliers - Instead of being restricted to the local utility offer, customers can choose from multiple suppliers. This brings new, more attractive offers to market.

Increased control - Competitive energy supply options show businesses the big picture of their overall energy expenditures, enable a greater variety of energy strategies and provide increased control over energy budgets.

An educated market - In a regulated system, the utility company manages the energy on behalf of users with little transparency or accountability. In a competitive environment, customers are more informed about their purchasing options, and play a pivotal role in the evolution of the market. Knowledgeable consumers help guide the marketplace, highlight issues, identify areas where improvements are needed and spur innovation.

Motivation to create new products - Suppliers don’t compete on price alone - innovation is a critical differentiator. Competitive suppliers are constantly developing options to meet present and future customer needs, such as online energy analysis services and environmentally-friendly energy plans.

PRICE PROTECTION PLAN

CHOOSING THE UTILITY VS. DIRECT ENERGY

LOCAL UTILITY (ConEd / PSE & G)

DIRECT ENERGY

Billing • LDU sends customer their bill

• Direct Energy is noted as supplier on Local Utility Bill

Charges on Bill • LDU Distribution and Supply

• LDU charges for distribution, Direct Energy charges for supply

Price Change • LDU price will change based on market conditions

• Direct Energy provides fixed rates

Service • LDU will deliver natural gas & electric to business• LDU will read meter • LDU will handle service and emergencies• LDU will provide general customer care

• LDU will still do everything it does currently• Direct Energy will provide an additional level of customer care associated with its products and services