We Tell It Like It Is
Answering questions about our business.
Why are we succeeding in competitive energy markets?
We're successful in competitive markets because we use our knowledge of the energy industry and our risk management expertise to constantly focus on meeting our customers' needs with superior products and services at a lower cost.
We're the only company that provides service in all markets where customers can choose energy suppliers. We're a one-stop energy shop offering electricity and natural gas and related value-added services-acquiring and supplying the energy and providing energy management advice and tailored billing.
We make a complex process simple, enabling our customers to spend more time on their specific businesses and less time trying to learn the energy business.
When we first began developing our strategy a little more than three years ago, we clearly saw the opportunities and built our company for competitive markets. Now we're successfully executing the strategy we put in place and building on the strength of our business model.
If our strategy is the right one, why aren't more companies entering competitive markets?
Competitive markets require companies to take charge of their own success. Having to compete for customers and business is a difficult transition for traditional regulated utilities, which are accustomed to having customers and rates guaranteed to them by regulators.
Even the stronger and more influential traditional regulated utilities prefer to depend upon what I call the false security of slow revenue growth in line with that of the overall economy and a rate of return determined by their regulators.
In addition, it is not easy to enter competitive energy markets. The scale, the assets, the reach and the multi-disciplinary expertise needed to be successful take a lot of time, effort and skill to build, develop and implement.
So what we see are niche players. There are financial firms that can trade energy very well but don't have the infrastructure that we do to serve customers' diverse energy needs. There are also small generators and suppliers that do well in small geographic areas but don't have the national reach and regional expertise that we provide to customers with multiple locations.
Where is energy restructuring headed?
Competitive markets are the future of the energy industry. I believe very strongly in competition and giving customers choice. It just makes good business sense for customers to be able to choose their energy supplier.
Competitive energy markets are working, and customers are saving money. Markets currently open to competition are restructuring further, giving more customers more flexibility and opportunities to choose their suppliers.
Open electricity markets like those in New York, Texas, New Jersey, Maryland, the New England states, Illinois, Michigan and the Canadian province of Alberta are solid examples of how well-functioning competitive energy markets can yield tangible benefits for consumers who have the option to choose their supplier.
That success is gaining attention. We're clearly seeing more and more regulators become increasingly focused on competitive energy procurement as part of the overall energy resource mix.
I believe competitive markets eventually will dominate the energy landscape because it's clear they produce efficiencies, better service and new products that benefit customers.
