Constellation Supporting ComEd Residential Offer with Direct Mail, Other Channels

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March 1, 2011  

Constellation NewEnergy is supporting its Commonwealth Edison residential electric offers with 2.2 million pieces of direct mail, along with a variety of other marketing initiatives, said David Fein, Constellation Energy's Vice President of Energy Policy for the Midwest and Pennsylvania.

Constellation's residential products at ComEd, which offer up to 12% savings versus default service, were first reported by Matters a week ago (2/18).

Fein noted that direct mail is not an inexpensive channel, and shows that Constellation is investing significantly in the Illinois residential market.

Constellation will also use outbound and inbound telesales, online marketing, affinity programs, and employer/employee programs with existing commercial customers to support the residential offers. Constellation will also use event sponsorship and billboard advertising to support the offers.

Constellation's standard offers to ComEd residential customers do not include gift cards as an incentive for enrollments, as the supplier has used in other new residential markets, although Fein reported that Constellation is offering gift cards to a targeted group of customers via direct mail to test the enrollment rate of those receiving the incentive versus the standard offer.

Similar to other markets, Constellation is offering a residential referral program under which the referring customer and the referred customer can each receive a $25 prepaid Visa gift card.

Fein said that Constellation is taking a "serious look" at the Ameren residential market and continues to evaluate competitive conditions there. Constellation is not currently offering residential service at Ameren.

Fein also reported that Constellation is evaluating the feasibility of dual commodity offers combining residential electricity and gas in Illinois. Constellation would need to receive an amendment to its Illinois gas license to serve small volume customers prior to any such dual commodity offers.

Fein also provided an update on Constellation's residential electric offers in the District of Columbia, also first reported by Matters last week (2/18).

Unlike with its Maryland, New Jersey, and Illinois residential markets, Constellation is not promoting the D.C. residential offers at this time, and is testing enrollments which occur organically through its residential website without any promotion.

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