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North American Power Launching National REC Product, Enters New Jersey Electric Market
July 18, 2011
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North American Power has commenced electric service in New Jersey, and is also launching a new REC product available nationwide.
North American Power is offering electricity to residential and commercial customers at PSE&G, Jersey Central Power & Light, and Atlantic City Electric.
In each service area, North American Power is offering a residential monthly variable rate currently priced at 8.99 cents per kWh, which includes 25% renewable energy.
Additionally a 100% renewable option is available at 10.94 cents per kWh at each utility.
North American Power also states on its website that it is "coming soon" to Illinois for electric service.
Additionally, under the brand American Wind, North American Power is launching a block REC product nationwide.
A 1,000 kWh block of Green-E certified wind RECs is priced at $19.50. Among competitors, Sterling Planet offers a 1,000 kWh wind REC product for $18.50, and Community Energy offers 1,000 kWh in wind RECs for $25 ($2.50 per 100 kWh block). Green Mountain Energy prices RECs as low as $12 per 1,000 kWh, but customers must buy at least 6,000 kWh ($72) at a time (at least per the standard offers on Green Mountain's website).
For the REC product, North American Power will use the customer referral business model recently instituted for its load serving electric service, which relies heavily on affinity donations to various charities and non-profits (Save the Children, Action Against Hunger, The National MS Society, etc.) under its Mission to Millions campaign (see 7/1 for discussion of this model)
Specifically, North American Power will make a $1 donation to the customer's elected charity for every month they purchase the REC product.
North American Power Co-founder and CEO Kerry Breitbart told Matters that North American Power has expanded to REC marketing due to the "tremendous need" to focus on renewable energy development in the U.S.
Breitbart sees a huge opportunity for growth in the REC business because, although there are a handful of national REC providers, few are focused on the residential market, and none are actively marketing on a national basis.
Additionally, North American Power's existing warm marketing approach makes it uniquely situated to grow the REC business through "caused-based social network marketing," Breitbart said.
Under North American Power's new customer referral model, there is no fee to sign up as a representative and earn residuals from referring customers, providing all customers with a no-risk opportunity for economic gain in addition to helping the environment, Breitbart added. This model also makes it easier for customers to refer the product via social media
Breitbart also said that, in some states, the REC marketing will provide North American Power with an existing customer base to which it can later market electricity (and in the future gas) as it expands beyond its current five-state footprint for load-serving supply.
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