Reuters: Regulatory News: Exelon's Shattuck sees more US retail power choice

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Exelon's Shattuck sees more US retail power choice Apr 4th 2012, 22:10 By Eileen O'Grady HOUSTON, April 4 | Wed Apr 4, 2012 6:10pm EDT HOUSTON, April 4 (Reuters) - More U.S. states may look to introduce or expand competition for electric service in the new era of cheaper natural gas prices, Mayo Shattuck, executive chairman of the newly merged Exelon Corp said on Wednesday. In his second public address since taking the reins of at the "new" Exelon -- created in March from the $7.9 billion merger of his former company Constellation Energy Group and Exelon -- Shattuck told attendees at the Gulf Coast Power Association annual spring conference that he sees renewed life in the move toward retail electric choice. "Competitive markets are leading the way toward the cleaner, smarter energy grid that we will need and will continue to create in order to remain competitive in the global marketplace," Shattuck said. Shattuck said he was encouraged by recent activity in Maryland, Pennsylvania and Illinois where more consumers are shopping among electric suppliers for the best price and service. He was also watching Ohio, Michigan and Arizona. "I'm hopeful that we get some wins in the near-term after the lag effect associated with that huge run-up in commodity prices that stifled the last discussion about competition," Shattuck said. "I think it's coming back." It's not all good news, however, Shattuck said. "We've spent a lot of money in New Jersey and don't have a lot to show for it on the residential side," he said. The key is to remain staunch advocates for competition, Shattuck said. "Long before the completion of our merger last month, Constellation and Exelon were both early to embrace principles of competition in electricity markets. "Our merger was ultimate affirmation of those ideals and together we will be an even stronger voice for competition," Shattuck said. Texas, viewed as the most robust market for electric competition in the nation, was important to both Exelon and Constellation before the merger and will remain a key market for new company due to its growing economy and market design, Shattuck said. "Without question, Texas has been the epicenter of a lot of positive change that has taken place since the advent of competition," he said. Texas regulators and grid operators are currently struggling to adjust the market price cap and other price signals in the wholesale market to encourage investment in new generation that has come to a halt due to low natural gas prices and difficult financing requirements. "Ultimately, it may require a combination of policy and prescriptions to achieve the goal and maintaining the vigorous investment needed to address future energy needs," Shattuck said. Link this Share this Digg this Email Reprints

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