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Reaction to Green Mountain decision to terminate NOPEC contract

Today, Green Mountain Energy announced it has ended an agreement to serve customers in the Northeast Ohio Public Energy Council (NOPEC) electric aggregation program. Green Mountain has indicated it will stop supplying electricity on December 31, 2005.

The following statement can be attributed to Janine Migden-Ostrander, Ohio Consumers' Counsel:

The Office of the Ohio Consumers' Counsel (OCC) is sorry to see any supplier leave our state's electric market. Green Mountain Energy has provided approximately $50 million in savings to many customers throughout northern Ohio.

The OCC hopes that the electric aggregation efforts by the Northeast Ohio Public Energy Council can continue. Any savings gained from aggregation would provide residents with much-needed relief from FirstEnergy's electric rates, which are the highest in Ohio.

Green Mountain's exit from the Ohio market points to concerns about Regional Transmission Organization (RTO) costs and obstacles in the competitive market. The OCC shares many of those concerns and has intervened in the federal docket dealing with the administrative costs charged by RTOs.

The exit of Green Mountain should not be interpreted as a sign that competitive markets cannot work. Rather, it means that work needs to be done to develop the markets and provide residential consumers with all of the potential benefits of electric choice. Competition can work, but the roadblocks at both the federal and state level have been numerous and costly.

The OCC hopes that the environment changes and that, in the future, Green Mountain and other competitive suppliers can participate in the Ohio market and offer benefits to residents.

About the Office of the Ohio Consumers' Counsel

The Office of the Ohio Consumers' Counsel (OCC), the residential utility consumer advocate, represents the interests of 4.5 million households in proceedings before state and federal regulators and in the courts. The state agency also educates consumers about electric, natural gas, telephone and water issues and resolves complaints from individuals. To receive utility information, brochures, schedule a presentation or file a utility complaint, residential consumers may call 1-877-PICKOCC (1-877-742-5622) toll free in Ohio or visit the OCC website at www.pickocc.org.