Susan Macey, Indiana Office Utility Consumer Counselor, provides her thoughts on the importance of energy issues for our future. She also discusses the global market place and global demand for energy.

Competition is generally perceived to be a good thing that produces benefits to consumers, but some doubt its efficacy when it comes to electricity. How can the theory of competition be reconciled with the facts of customer choice? The answer lies in recognizing the difference between customer choice among retail customers and competition among generators in the wholesale market. Retail customers generally are not motivated to switch suppliers due to small savings, uncertainty about the alternatives, or better things to worry about. As a result, much like voters who do not vote, retail customers end up stuck with an incumbent who feels secure in their position and finds it unnecessary to compete.

On the other hand, wholesale competition has spurred substantial entry into the market by new, non-utility generators. While prices have risen in part due to increasing fuel costs, competition in the wholesale market has produced a stable supply of relatively low-cost energy. Ease of entry, stability in pricing, operating efficiency, technological advances; these are hallmarks of successful competition. Benefits achievable through wholesale competition can be realized by retail customers without the expense and risk of a retail choice program.

Marc E. Lewis
Vice President
Indiana Michigan Power Company

Ed Simcox, president of the Indiana Energy Association, discusses the need to conserve power, and the need to build new generation for the future. He also mentioned that we have a positive story to tell regarding Indiana having one of the lowest average rates in the Midwest.

David Pentzien, vice president of sales and marketing for ProLiance Energy, believes deregulation will have a tremendous impact on both the general public as well as businesses. He added that deregulation forces people to become more educated consumers.

Deregulation per se is not moving forward rapidly. However, it is heartening to see coalitions of policy makers, utilities, customers and others working to create new and different ways for customers to buy energy. For example, some customers prefer to lock in the price of their energy or to even set a bill that will not change for a defined period of time. The need for even more options for customers is real and expanding. In Indiana we have the need for and we have created choices for customers. The number of choices available to customers needs to grow and expand.

Mark Maassel
President
Northern Indiana Public Service Company

Carey Lykins, president and CEO of Citizens Gas & Coke Utility, provides his insight on Indiana's strong focus on energy policy, economic development and that they have realized affordable energy has a direct impact on economic development.

Ron Christian, executive vice president and chief administrative officer of Vectren Corporation, discusses his thoughts on how the state will be positively impacted by the continuing enhancement of infrastructure. He also discusses his thoughts on the importance of infrastructure and the retention of employers.

We have a national energy policy act and state energy plan, but I am personally concerned that we are losing the ability to attract industrial growth in the country and State of Indiana. We do not have a clear plan to have adequate energy, especially electricity in the region and in the United States. We should be building more coal fired plants with proven traditional technologies while at the same time, developing new technologies and promoting nuclear energy to meet future needs. By closing the older coal fired plants and constructing new coal fired plants, we can reduce the total emissions from our environment and improve the production efficiencies that will retain our low cost energy niche. By constructing nuclear plants we can control the carbon dioxide and all other emissions. We can not afford to just say ‘no’ for every possible energy production and expect to have economic prosperity in the country.

Raj Rao
President
Indiana Municipal Power Agency