Reliant-NorthEast-Kit

Restructuring

Restructuring

Restructuring “Restructuring is the process by which governments remove, reduce, or simplify restrictions with the intent of encouraging efficiency and competition in markets.” • In the energy industry, restructuring means consumers will have their

Regulated Markets Agents cannot sell electricity to customers living in a regulated area All processes, including pricing are regulated • Governed by regulatory or government body • Tasked with ensuring compliance Only utilities supply and deliver energy • Utility sets supply and delivery prices • Government regulates associated distribution and delivery prices • Throwback to when the country was growing and uniform access to energy was vital to future prosperity Consumers afforded no choice

choice of electricity and natural gas generation suppliers. • Not all energy markets have been restructured, and the ones that have been may not even call it that. • Is on a state by state basis, and as a supplier, we can only operate in markets that have been restructured/offer customer choice

Restructured Market • Retailers’ supply prices are based on factors independent of the local utilities • Suppliers set their own price dictated by terms of service • Suppliers licensed and/or approved (NY) by the PUC are able to enter the market • Directly compete against utilities • Consumers can choose who supplies their energy • Similar to other common service providers (phone, TV, internet) Restructured Markets Serviced by NRG € Retail State Abbreviations • IL - Illinois • MD- Maryland • MA- Massachusetts • NJ- New Jersey • NY- New York • OH- Ohio • PA- Pennsylvania • DC- Washington DC • DE- Delaware • CT- Connecticut*

Benefits Of Restructuring Consumer choice

• Competition creates pressure on prices

Innovation • Incentivized to differentiate supply products and options (Reward programs) Renewables • Example of innovation created by customer choice