New partnership helps lower billscontinued from page 1 Michigan Retailers Association has established a new partnership
with the largest supplier of electricity in North America, Exelon Corporation,
to help members save on utility bills. Discounts will vary depending on usage patterns and service area, but most members can expect to save 10 to 25 percent on electricity. The new partnership expands MRA’s current Electric
Choice program by adding a second supplier. In addition, Exelon is expected
to offer discounts on natural gas in the near future. Larry Meyer, chairman and CEO of MRA, calls the agreement
“one more positive action by MRA to lower our members’ costs
of doing business.” “Our mission is to help members stay in business
and grow by providing services that lower their costs. We are always asking
‘what can we do better together?’ to help our membership,”
said Meyer. The terms of the agreement with Exelon are similar to those of the current agreement with alternative electricity supplier Quest Energy. MRA acts as the aggregator and allows members to purchase energy from Exelon at discounted prices. Exelon was especially attractive because it can also offer natural gas. “The addition of natural gas as an option represents
an expansion and evolution of MRA’s current Electric Choice program,”
said James P. Hallan, MRA’s president and chief operating officer.
In the present market, no alternative natural gas providers
offer competitive rates. “However, that situation is expected to
reverse sometime soon, and when it does, MRA members could see real savings
on natural gas as well,” said Hallan. Exelon, based in Chicago, was formed in 2000 when Unicom
and PECO Energy merged. Ranked 33rd on the Fortune 500 list, it is the
top-ranked utility, according to Business Week. It has 5.1 million retail
electric customers, and in 2002 its revenue was $15 billion and its net
income $1.4 billion. Exelon has a strong presence in Illinois, under the name
ComEd, and in southeastern Pennsylvania, under the name Philadelphia Electric.
The Illinois Retail Merchants Association has a successful program with
Exelon to provide electricity to its members. Exelon is now entering the Michigan market. “Michigan
Retailers Association was the first organization Exelon approached in
Michigan, and we expect to be their largest aggregator,” said Hallan. The new opportunity with Exelon came about as a result
of changes in MRA’s current Electric Choice program. MRA began its Electric Choice program in 2000. It is currently
available to businesses receiving power from DTE Energy or Consumers Energy
whose average monthly bill is more than $1500. The program is used by
a broad spectrum of retailers. Recently, Quest Energy changed its business operations,
making some changes in the Electric Choice program necessary. Wisconsin
Power & Electric became a majority owner in Quest, which then raised
the wattage requirement for new applicants. The new usage requirements make it difficult for any MRA
member not already enrolled in the program to participate. Quest’s
new strategy is to target heavy electricity users and not the service
sector. Current members who have contracts with Quest will continue
with Quest through the end of their contracts. When their contracts are
up, most members can switch to Exelon. “The timing of this agreement is very good. Michigan
Retailers currently has about 50 retailers who have been waiting for a
new power supplier, because they did not qualify under Quest’s revised
requirements,” said Hallan. For more information about Exelon or Electric Choice, call Nicole Antenore at Michigan Retailers Association, 800.366.3699 or e-mail her at nmatenore@retailers.com. |
Some members can
save on gas bills now
|