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Columbia Gas of Maryland Sees Highest Residential Choice Participation in Over Two Years
August 16, 2011
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Columbia Gas of Maryland, whose choice program is currently under threat of cessation, has seen continued growth in residential and commercial choice customers during the first six months of 2011, with residential migration reaching its highest total in over two years.
See our July 6 and March 30 stories regarding Columbia's recommendation to end the choice program
The growth in choice accounts was evident as the Maryland PSC posted updated natural gas migration statistics as of the quarter ending June 2011.
Matters also compiled a comparison of the migration stats as of June 2011 versus March 2011 (the most recent prior report).
See our related story on migration at BGE, WGL
As of June 2011, some 791 residential customers were taking choice service at Columbia Gas, up from 675 as of March 2011.
While the number remains small (still less than 3% of residential accounts), residential migration has increased appreciably since December 2010, when residential accounts served by competitive suppliers were 670. Moreover, the growth of 116 residential choice customers from March to June does not represent the normal ebb and flow in a low choice participation environment. Indeed, during the last six months of 2010, the number of migrated residential accounts did not swing by more than nine accounts in a given quarter (and the total swing was 16 accounts for the six-month period), so the growth of 116 accounts from March to June 2011 does represent a break-out from last year's trend. Additionally, as indicated above, the total of 791 migrated residential customers represents the highest number of residential choice accounts since 794 in February 2009. While the growth of some 116 accounts pales in comparison to growth of 10,000 residential accounts at BGE during the quarter (which has POR in place), Columbia has only two active residential suppliers accounting for the growth. The growth also comes despite a cloud of uncertainty regarding the choice program, as Columbia has recommended ending small volume choice due to low participation, and the likely inability to recover COMAR 20.59 implementation costs from choice customers alone (as any assignment of costs whether through POR discount rates or directly to suppliers would make choice rates unattractive, prompt migration back to default service, and leave no choice customers from which to recover the costs, forcing the costs to be recovered in base rates). Such uncertainty, with the PSC possibly ending the choice program at its October 26 meeting, undoubtedly acts as a headwind against investment in the service area by suppliers, and thus migration -- making the growth more notable. Since December 2010, commercial migration has also grown. In its filing recommending an end to the choice program, Columbia listed commercial choice participation as 102 accounts as of December 2010. Although not explicit, it is believed this equates to the "Firm Service Commercial and Industrial" category in the PSC data, and does not reflect Daily-Metered and Interruptible customers. As of June 2011, Firm Service Commercial and Industrial choice accounts at Columbia were 184.
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