Electricity and natural gas prices remain at or near 5 year historical lows. In this environment, occasionally customers indicate that they would prefer to continue monitoring the market, in hopes of benefiting from even further price declines. While we understand the reticence to act now (as no one likes to be questioned by management if prices do drop), we recommend considering a dollar cost averaging approach, similar to how an equities investor might act, to capture at least a portion of today's attractive market pricing.

Electric rates average approximately $0.11723/kWh for CLandP customers. The market is returning rates in the 9 cent range, depending on a customer's load characteristics. This should be a good time for customers to transact.

A multi-phase bidding process began in October 2009 and concluded with the posting of retail rates in March for supply service contracts that will begin on June 1, 2010. New rates are lower overall; however there should be savings headroom for customers who switch.

Delmarva Power and Light concluded its multi-phase bidding process in late January 2010. DE SOS Rates effective June 1, 2010 through May 31, 2011 are posted on the utility's website and are subject to Commission Approval. Broadly, shoppers in Delaware who switch should see savings opportunities.

New rates will become effective for NGrid as of May 1, 2010. The utility rates for small commercial customers will be $0.081/kWh for July to October 2010. The NEMA rate for May to July will be $0.07282/kWh, the SEMA rate for the same 3 month period will be $0.07494/kWh and the WCMA rate will be $0.07567/kWh. Customers in this market cannot achieve savings against these short-term utility rates unless they go on an index rate. Budget certainty is the current customer focus in this market.

SOS Type II Rates for March 1 - May 31, 2010 service are posted. The procurement for Type I accounts will occur in April for the June 2010 - June 2011 service period.

Customers looking for guaranteed savings in Maine are likely better off staying with their utility rate. The new Standard Offer rates that took effect on March 1, 2010 reflected a 16% decrease in price for large Bangor Hydro customers and a 3% decrease in price for medium class customers. For Central Maine Power customers, the standard offer prices reflected increases of 3.5% for medium and 8.5% for large customers.

A Basic Generation Service procurement was held in February 2010, resetting prices for one third of the BGS load through a 36 month term effective June 2010. DRAFT utility rates are already posted and lower as the market was lower than past levels during this procurement period -- but we should still see headroom if the market remains at similar levels.

In addition to customers in First Energy territories, customers behind AEP and DP+L should now consider shopping for competitive supply. We continue to see savings opportunity for low load factor accounts.

Met-Ed and Penelec have a second auction for 2011 standard offer rates scheduled to run on April 19, 2010. PPL has another auction scheduled for April 20, 2010 to procure 2011 supply. PECO's large customers were required to "Opt-In" to PECO's Fixed-Price Program Option by March 11, 2010 in order to have their load included in the May 24, 2010 auction. Those customers that chose to opt-in will have the option of deciding to take on the auction rate by late June.

National Grid has published its rates for April 1, 2010 to June 30, 2010. The rates average about $0.078283/kWh for that 3 month period, generally below the rate available in the competitive market.

Texas power prices continue to have a strong correlation to natural gas, due to the abundance of gas-fired generation in the region. As long as natural gas remains at relative lows, commercial and industrial customers in ERCOT should consider locking in historically low power rates.

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