Direct Energy PECO Offer to be Supported by Extensive Marketing, Ad Campaign

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November 17, 2010

Direct Energy will be using a full array of marketing and advertising channels to support its new PECO residential electric offers, Cory Byzewski, Vice President and General Manager, US North, for Direct Energy Residential, told Matters yesterday.

Direct Energy's PECO residential offerings were first reported by Matters (11/16).

Direct Energy will use a variety of direct sales methods, direct mail, telesales, and the web, to enroll customers, supported by a mass media campaign including newspaper, radio, and billboard ads, along with ads on certain gas pumps featuring video content.

Byzewski confirmed Direct's initial product will be the 12-month fixed rate of 9.42¢/kWh previously cited by Matters, with a discounted rate of 9.22¢/kWh available for military personnel and senior citizens.  The senior discount is the only such market-wide product currently offered in the PECO residential market.

Additional product offerings will be driven by customer demand, Byzewski said.

As noted by Matters, Direct is offering a 40-point Heating & Air Conditioning inspection free to the first 1,000 customers, as part of these customers' free membership in Direct's Comfort Club.  Byzewski said that the membership is valued at $199-$300 depending on the customer's HVAC system.

Direct's entry into the PECO residential market brings the total number of residential electric suppliers with current offers to 13, or 15 when including Energy Plus Holdings, LLC, which has designed a residential product for several affinity/rewards programs (though not yet offering a market-wide product), and Viridian Energy, which is due to start enrolling customers in about a week (11/4).  

Notable names still not officially making a residential offer yet include ConEdison Solutions, MXenergy, and Washington Gas Energy Services, all of which are in the PPL residential market.

Current PECO residential electric suppliers include:

BlueStar Energy Solutions (10/19)

Champion Energy Services (10/18)

Commerce Energy (Just Energy)

Direct Energy

Dominion Retail (11/8)

Energy Plus Holdings, LLC* (10/19)

Gateway Energy Services Corporation (10/29)

North American Power (11/2)

Palmco Power (10/18)

Respond Power (11/15)

Spark Energy (11/15)

Stream Energy* (11/8)

The Energy Cooperative Association of Pennsylvania (10/18)  

Verde Energy (11/8)

Viridian Energy* (11/4)

*Not currently offering a rate on PA Power Switch

Regarding Direct Energy's electric and natural gas residential offers at Duke Energy Ohio, also launched this week, Byzewski said that initially Direct Energy will focus on direct sales, and will not include a large media blitz as it is undertaking at PECO.  

Direct noted that its offer is the only dual fuel offer in the Duke Energy Ohio market, where the only other residential electric suppliers are Dominion Retail, Duke Energy Retail Sales, and FirstEnergy Solutions.  According to the PUCO apples to apples chart, the only other residential gas suppliers with current offers at Duke Energy Ohio are IGS Energy, Integrys Energy Services, Vectren Source, and Volunteer Energy Services.

   
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