Default Provider: Conclusions, Recommendations, and Implications of CAEM's Study

Session 3
Analysis of the Impact of Model Types in the Development of Competitive Markets
10:45 a.m. – 12:00 noon

Panelists:
Ken Malloy, CAEM CEO
Calvin Timmerman, Chief Economist and Director of Rate Research, Maryland Public Service Commission
Wayne Harbaugh, Manager Pricing & Regulatory Services, Baltimore Gas & Electric
Michael Swider, Manager, Regulatory Affairs and Government Relations, Strategic Energy

Although diverse with countless permutations, Default provider models generally fall into one of the following 12 models:

  • Competitive assignment
  • Monopoly assignment
  • Retail bidding
  • Wholesale bidding
  • Aggregation of mass-market customers
  • Virtual choice
  • Pricing incentives to switch
  • Competitively priced distribution default rate
  • Bifurcation of customer classes
  • Regulated rate based on cost of service
  • Wholesale/retail asymmetry
  • Price cap on marketers

What are the similarities and differences? Pros and cons?