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After the Shakeout: Another Look at the Georgia Gas Market

Five suppliers are left. But that works when the utility gets out of the supply business.
Fortnightly Magazine - September 15 2001

their debts are reallocated to customers of other suppliers. Nor is their any public policy debate on how to distribute such losses.

  1. "Gas Marketers Thin Out as Deregulation Advances." , July 10, 2000, page F1.
  2. "Shell Wins Battle for Gas Firm Assets." , November 18, 1999, page C1.
  3. AES Corp. purchased Titan's assets, including 130,000 customers in Pennsylvania, Ohio and Maryland for $6 million, but recently sold the mass market customers to New Power.
  4. "Gas Marketer's Parent sold; AGL in Line to Collect Debt." , July 28, 2000, page F3.
  5. New Power purchased all of Columbia Energy's natural gas and electricity customers, including another 215,000 customers in other states including Pennsylvania, Ohio, and Maryland.
  6. "National Firm Enters State Gas Market." , December 8, 2000, page D1.
  7. , July 9, 2001, page 13, "Cash Market Hub Trading ($/MMBtu), Henry Hub, La."
  8. These hypothetical customers were assumed to have an average, weather-adjusted residential load shape, and a design day demand consumption (DDDC) of 1.29. Bills during the period of July 2000 to March 2001 were analyzed. Distribution charges (AGLC charges in Georgia) are included in the total bill analysis. Total bills for a representative customer of each Georgia supplier on each type of plan were constructed using the "Certified Gas Marketers Price List" data from July 2000 to March 2001 on the GPSC Web site. Monthly rates and service charges for large utilities in each of the five states were gathered and applied to the average customer load and DDDC profile.
  9. "Georgia's Price Crisis." , April 1, 2001, page G1.

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