PITTSBURGH, PA, June 15, 2004 - With the next phase of Maryland's energy deregulation program set to begin on July 1, Strategic Energy is offering better choices to businesses looking to manage one of their biggest overhead costs - electricity.
Strategic Energy, a leading supplier of retail electricity in competitive markets nationwide, already provides electricity supply to more than 50,000 customer accounts in nine other U.S. states. With big changes taking effect in Maryland this summer - including sharply rising utility rates - Strategic sees an opportunity to help the state’s businesses manage their energy investments by better understanding the choices available in a competitive market.
According to Trevor F. Lauer, Vice President of Sales & Marketing at Strategic Energy, a host of new challenges will prompt businesses to partner with a competitive electricity supplier that can bring innovative products and market experience to bear on their behalf. "Maryland’s major utilities have all announced major rate hikes taking effect this summer, which should instill a sense of urgency to consider new competitive options in the marketplace. To derive savings from competitive markets, commercial energy users need a supplier who can serve as their ‘eyes and ears’ in the marketplace, and deliver innovative products that can capitalize on market opportunities."
While electricity choice has been active in Maryland since 2000, existing "Standard Offer" rates - those that Maryland’s regulated electric utilities can charge their customers - have been fixed below the prevailing prices available in the open market. But on July 1, rates for some customers will increase as much as 30 percent according to those recently announced by Pepco, BGE and Conectiv. The new market-based utility rates, coupled with an additional "retail margin" fee levied on all customers who don’t switch, should give businesses an incentive to consider a competitive option to utility service.
For example, by switching to Strategic Energy, the Hyatt Regency Chesapeake Bay Golf Resort expects to save as much as $105,000 a year. "Switching to Strategic Energy will be a win-win partnership for both companies," said Mike Walsh, General Manager. "And considering the high rates our facilities would be paying starting on July 1, there was definitely an incentive to switch suppliers. We look forward to reaping the benefits of competition with Strategic Energy."
Strategic Energy, headquartered in Pittsburgh since 1986, is a leading supplier of retail electricity in competitive markets. For a management fee, Strategic Energy buys wholesale power under long-term contracts for direct delivery to retail customers also under long-term contracts. The company operates in ten states with retail choice, including California, Connecticut, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Texas. Majority-owned by Great Plains Energy (NYSE:GXP), Strategic Energy’s website is www.sel.com.
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Contacts
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Media:
Doug Colafella
Strategic Energy
(412) 644-3095
dcolafella@sel.com |
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Investor Relations:
Todd Kobayashi
Great Plains Energy
(816) 556-2904
todd.kobayashi@kcpl.com |
