The Future of ABC Channels in Texas Live Interactive Audio Conference

Texas has produced the most competitive retail power market in the country with nearly 50 marketers vying for customers' business. But Texas' pro-markets climate has spawned too over 100 third-party channels -- aggregators, brokers and consultants (ABCs) -- who are helping customers make sense of it all. What does the impending Jan 1 move to full competition mean for them?

Washington, DC (PRWEB) July 2, 2006

The ABC (aggregators, brokers, consultants) model in Texas should keep going strong despite numerous changes in the retail and wholesale power markets, industry leaders told a Restructuring Today audio conference, now available on CD.

It's "clear" that ABCs will remain a big part of retail sales in Texas for one simple reason, Cirro Energy Services President Jeff Nottingham explained. Outsourcing.

C&Is are examining every part of their business to cut costs, he noted. They ask themselves when weighing outsourcing operations: Is doing this critical to our infrastructure? Do we have expertise in doing this?

When it comes to buying power, the answer is "No" for most C&Is, Nottingham added. Thus they'll look to ABC channels more. David Wiers, vice president at Choice! Energy Services, sees limited ABC growth stemming from the end of the price to beat.

Some small C&Is may look to alternate sales channels but most who would are using them now, he noted. Nottingham and John Elder, CEO of Legacy Energy Management Solutions, agreed that the consulting side of the business is poised for the biggest growth.

Customers have to see value from using ABCs, Elder noted, and that's most transparent in consulting -- giving customers load profiling, helping with energy efficiency and auditing bills.

Traditional brokering that simply links a buyer and a seller is going to decline, Elder predicted.

ABCs offering demand response solutions will become hot too, the panel predicted, especially with shrinking reserve margins in ERCOT.

ERCOT's move to nodal markets will boost customers' desires for help buying power since nodes add complexity, the three agreed.

To hear the full discussion unabridged, including questions and answers, visit http://www.restructuringtoday.com/catalog/audiocds/30006038-1.html or call 800-486-8201 (202-298-8201) to order the 90-minute audio CD recording for just $150 -- shipping and handling is free -- and it's shipped via UPS Ground (domestic) or USPS Priority (international) within one business day.

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