Decade of Retail Electricity Competition in Illinois Yields Estimated Customer Savings in Excess of $1 Billion
October 01 2009 - 2:22PM
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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