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The examples listed below clearly confirm that vertically-integrated states are not immune to major rate increases. In this time of challenging economics, it is more important than ever to test utility resource decisions against all available alternatives, including those offered by competitive power suppliers, so consumers can be assured they are receiving the best possible deal. With double digit increases, the rate hikes listed below in vertically-integrated states are well in excess of the Energy Information Administration’s projected national average increase of 2.3 percent in 2009 and 2.0 percent in 2010. This is not an exhaustive list: numerous vertically-integrated utilities are raising rates across the United States.

• Electricity rates for most North Carolina customers could increase 50 – 100 percent if Duke Energy and Progress Energy proceed with plans for $35 – 40 billion in new utility-built power plants, according to a report released by the North Carolina Waste Awareness & Reduction Network (NC WARN). The report’s findings, including a large oversupply of electricity in the Southeast, validate the need for strong competitive procurement policy in North Carolina, to ensure that all regional supply options are considered in a non-discriminatory manner to the benefit of all customers.


• In May 2008, the Georgia Public Service Commission approved a $222 million rate hike for Georgia Power to pay for higher fuel costs. The increase follows $372 million and $323 million rate increases from February and December 2007, respectively


• West Virginia customers of American Electric Power subsidiaries Appalachian Power and Wheeling Power could see a 43 percent increase in their power bills over the course of the next three years. The $442 million increase would be split into an 18.5 percent rate hike to take effect July 1, 2009, which would raise the monthly cost of electricity for consumers by $11.57, with subsequent increases of 14.5 percent in 2010 and 13.2 percent in 2011. According to AEP, the high cost of coal is the cause of the significant jump in rates.


• Dominion Virginia Power customers saw their monthly power bills jump $16 in July 2008, after the State Corporation Commission approved an 18 percent rate increase. The rate hike is the largest one-time rate increase in three decades. Dominion North Carolina Power customers are seeing a $16.04 monthly increase for average residential households, beginning in January 2009, due to a 17.7 percent rate increase.


• Florida Power & Light Company’s 4.5 million customers could begin to see their monthly bills increase starting January 2010 following a request for an additional billion dollars a year in base rates, to be followed by another $247 million starting in 2011. Approval of this request would mean a 31 percent increase in base rates for 2010.


• Progress Energy Florida customers have voiced significant displeasure following a 25 percent increase for monthly electricity bills in 2009, caused by rising fuel costs, investment in nuclear energy, and environmental improvements. The hike, which means an extra $27.29 each month for average residential customers, has prompted nearly 200 complaints to the Public Service Commission just in the first week of January 2009, with people demanding some powerful relief.


• Meanwhile, Progress Energy’s residential customers saw their monthly bills increase $10 starting December 2008 following a 10.2% rate hike in North Carolina. In June 2008, Progress Energy had asked for a 16.2 percent increase due mostly to an increase in the prices of coal and natural gas, but later agreed to spread the increase out over three years


• In early September 2008, Kansas City Power and Light filed for a $257.5 million increase in base rates with the Missouri Public Service Commission and the Kansas Corporate Commission. If approved, average residential customers in Missouri and Kansas can expect to see a 17.5% increase in electricity bills, resulting in monthly increases of $13.89 and $12.57, respectively.


• The Tennessee Valley Authority’s biggest rate increase since 1974 went into effect in October 2008, as customers began to see a 20 percent increase in their monthly electricity bills. The average residential home can expect to pay between $15.80 and $19.80 more per month, an increase TVA attributes to rising coal and natural gas costs. This is the second rate increase TVA customers saw in 2008, following a 7 percent increase last April.

The PJM markets once again produced competitive results for the first half of 2009, according to an assessment of the market by the Independent Market Monitor, Monitoring Analytics, LLC. The 2009 Quarterly State of the Market Report for PJM: January through June analyzed extensive market data, looking at PJM capacity, energy and regulation markets, among others, and found competitive results throughout.

"The Market Monitoring Unit (MMU) analyzed measures of market structure, participant conduct and market performance for the first six months of 2009, including market size, concentration, residual supply index, price-cost markup, net revenue and price. The MMU concludes that the PJM Energy Market results were competitive in the first six months of 2009."

"The overall results support the conclusion that prices in PJM are set, on average, by marginal units operating at or close to their marginal costs. This is strong evidence of competitive behavior and competitive market performance."

"Total internal capacity increased 350.2 MW from 156,968.0 MW on June 1, 2008, to 157,318.2 MW on June 1, 2009. This increase was the result of 439.2 MW of new generation, 74.1 MW from generation uprates, [and] 220.6 MW from demand resource (DR) mods."

"In the 2010/2011, 2011/2012, and 2012/2013 auctions, new generation increased 3,271.9 MW; 651.9 MW came out of retirement and net generation deratings were 2,994.9 MW, for a total of 928.9 MW. DR and Energy Efficiency (EE) offers increased 9,409.3 MW through June 1, 2012."

"Reliability Pricing Model (RPM) has explicit market power mitigation rules designed to permit competitive, locational capacity prices while limiting the exercise of market power. The RPM construct is consistent with the appropriate market design objectives of permitting competitive prices to reflect local scarcity conditions while explicitly limiting market power."

Average hourly load declined 4.4% in the first half of 2009 when compared to calendar year 2008, falling from an average of 79,515 MWh to 75,993 MWh.

Load weighted average prices in PJM declined 40.3% in the first half of 2009 when compared to calendar year 2008, falling from an average of $71.13 to $42.28.

On August 10, 2009, the New York State Energy Planning Board released a draft of its 2009 State Energy Plan for public review in an effort to "enable the State to determine its future energy needs and facilitate a deliberate, efficient, and cost-effective means of meeting those needs." The report notes the numerous benefits consumers have enjoyed following the implementation of wholesale electricity markets, including new entry of generation resources, increased demand response, and improved plant availability. These attributes serve to further show how competitive markets are providing nearly 20 million New York residents with reliable, economical, and clean energy resources.

"The competitive electricity market structure in New York is designed to provide transparent price signals for both energy and capacity. Such transparency encourages investors to locate generation, transmission, and demand response resources where they are most needed and it encourages investment in more efficient resources that can compete and bid into the market at lower prices. Since 2000, this market feature has provided incentives to entry of new generation resources totaling more than 7,600 MW, while putting the risk of such investments on investors rather than on ratepayers. Further, the competitive market structure provides for the system to be operated and dispatched in the most efficient manner to minimize total production costs and in the long term to provide electricity to customers at the lowest overall price." Resources and Markets Assessment,

"Uniform clearing price auctions are often criticized because it seems unreasonable on its face to pay a generator any higher price than that which it bid into the market and was willing to sell for on any given day. It would seem preferable to instead pay them the price that they bid. If such a design were to be instituted and generators did not change their bids, then baseload units, which generally have low marginal running costs and high fixed costs, would only be able to recover from the market the former and not the latter. Such units would not be able to survive for long, and no new baseload facilities would ever be built. Instead, to recover their full costs and maximize profits, generators would bid at or near what they believe the market clearing price will be. Such an imprecise process will ultimately result in a less efficient dispatch than what would result if actual marginal costs were bid, resulting in higher total production costs and higher costs to consumers. As long as markets are competitive, then the uniform clearing price auction will provide the most efficient result." Resources and Markets Assessment,

"Due to the availability of transparent price signals, over 7,600 MW in new more efficient and less polluting resources have been added since 2000 with 80 percent of that located below the central-east interface where prices are higher and the resources are most needed. Similarly, over 2,000 MW of demand response resources have also entered the market, much of it in New York City, significantly shaving peak loads when called upon." Resources and Markets Assessment,

"Due to competition among suppliers, the average plant availability in New York increased from 87.5 percent between 1992 and 1999 to 94.4 percent between 2000 and 2007... This increase represents the equivalent of adding 2,400 MW in new capacity... These improvements have reduced power plant emissions in all categories and are consistent with what was expected with the restructuring of the generation sector of the electric industry and the competitive wholesale marketplace that developed thereafter." Resources and Markets Assessment,

Commissioners from the Federal Energy Regulatory Commission (FERC) and individual state utility commissions continue to consistently point out the numerous benefits provided by Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs). Policymakers have cited numerous benefits of RTOs/ISOs that ensure consumers are provided with reliable and affordable electricity, including improved operational control of the electricity grid, expansion of supply options, and development of demand response programs. Recent activities have simply underscored these benefits with the expansion of the Midwest ISO to include MidAmerican Energy Company, the state commissions of the Entergy footprint exploring the possibility of entering the utility into the Southwest Power Pool and the Maine Public Utilities Commission's decision to order its utilities to remain in ISO New England. Policymakers at both the federal and state levels have spoken out on the benefits RTOs/ISOs provide to consumers and continue to affirm the importance of well-functioning organized electricity markets.

"Membership in organized regional power markets produces important benefits for consumers, such as by expanding electricity supply options through increased access to renewable energy resources and improving operating performance." - Chairman Jon Wellinghoff, FERC Press Release, 7/16/09

"The Commission has frequently addressed the benefits that organized wholesale electric markets bring to consumers, including improved operating performance. Organized markets also provide important opportunities for consumers to garner benefits from demand response. In addition, the organized markets expand energy supply options through increased access to renewable energy resources, such as the strong wind power resources that have and will be developed in the MidAmerican service territory. With such benefits in mind, I am pleased to support this package of orders that moves MidAmerican closer to integration in the Midwest ISO." - Chairman Jon Wellinghoff, Statement on MidAmerican Integration into the Midwest ISO, 7/16/09

"The orders and the statements of my colleagues reflect the longstanding consensus here in support of organized markets hopefully more entities see the wisdom of FERC regulated markets and we can proceed again consistent with the path we've had for some time. I think there're a lot of folks that talk about regulatory certainty and certainly our commitment to organized markets is an example of the comfort that the regulated industry can take from FERC policies." - Commissioner Marc Spitzer, FERC Monthly Sunshine Meeting, 7/16/09

"[With MidAmerican's integration into the Midwest ISO], reliability is going to improve. The Midwest ISO's security constrained economic dispatch will address constraints more quickly and more economically and will avoid the TLR mechanisms that are currently used in the MidAmerican territory... MidAmerican will now participate in MISO's ancillary services market which will provide greater flexibility and increase overall system reliability in the MISO region." - Commissioner Suedeen Kelly, FERC Monthly Sunshine Meeting, 7/16/09

"This has been a banner year for organized markets when you consider that we've had some positive developments in the Southeast, we've had the Nebraska Public Utilities join the Southwest Power Pool, we've had a successful launch of the California MRTU market, and we've had some other positive events in the MISO markets." - Commissioner Phillip Moeller, FERC Monthly Sunshine Meeting, 7/16/09

"The Commission decided today that Maine ratepayers are best served by allowing the agreement with ISO-NE to automatically renew for a two-year term. In doing so, the Commission concluded that the status quo with the reforms achieved to date was a superior vehicle to achieve the state's energy objectives than the alternatives presented and that such alternatives would not provide cost savings to Maine's ratepayers." - Maine PUC Press Release, 6/12/09

"RTOs serve an important role in administering spot electricity markets, dispatching generating resources efficiently, ensuring system reliability, and developing regional transmission plans... It is crucial that the Commission and the State of Ohio encourage Ohio utilities to take advantage of RTO membership for the benefits that it can provide." - Office of the Ohio Consumers' Council before the Public Utility Commission of Ohio, Case No. 09-90-EL-COI, 5/26/09

"Regional operations and markets were expected to yield operational efficiencies through a single entity's ability to optimize generation dispatch, regionalize transmission control and coordinate transmission planning across a broad region the Midwest ISO provides the expected efficiencies -- primarily by increasing operational reliability, providing access to more generation resources and mitigating factors that increase service cost... As the Midwest ISO operators have gained more experience with the system, many start up problems have been addressed and overall operation of the system has improved." - Midwest ISO Impact Working Group Report to the Public Service Commission of Wisconsin Concerning Participation in Regional Transmission Organizations, February 2008

After a period of steady increases in electricity prices nationwide regardless of state regulatory structures, consumers in states with restructured electricity markets are beginning to see rate decreases as the costs of fuel and other commodities involved in electricity generation have leveled off or decreased. Customers are benefiting from the transparency and rapid responsiveness of restructured markets to changing conditions and as demand falls. Below are just a few examples of falling electricity prices in states with more open markets.

Customers of Western Massachusetts Electric Company will see a decrease in their electricity bills beginning in July as a result of offers from competitive procurements, the company recently announced. Continued drops in supply rates have resulted in four consecutive price drops since October 2008. Beginning in July, prices for residential customers will drop 27.5 percent from current rates, while small commercial and industrial customer prices will drop 24 percent.

According to the New York ISO, falling fuel prices and electricity demand have also elicited a drop in prices. For the month of April 2009, the average price of wholesale electricity dropped 13 percent from prices in March and almost 50 percent from prices in January. Currently at $39.64 per megawatt-hour, average wholesale electricity prices are at their lowest since May 2002.

A May 2009 electricity auction conducted by Ohio state utility regulators will result in lower annual electricity rates for customers of FirstEnergy Corp. Those served by FirstEnergy subsidiary Ohio Edison will see a 16 percent decrease, while Toledo Edison customers and Cleveland Electric customers will see 12.6 percent and 7.4 percent decreases, respectively. “We are more than pleased that ratepayers in northern Ohio, many of whom have been victimized by the economy, will benefit from the outcome of this energy auction,” PUCO Chairman Alan R. Schriber stated. “We’re proud of the way the auction was conducted and commend the participants, the auction manager and our consultant for making this such a success.”

Ameren Illinois Utility customers will be paying less for electricity this summer, after the company announced an 8 percent drop in prices beginning June 1. The decrease comes as a result of a sharp decline in wholesale electricity prices following a reduction in general energy demand. The average residential customer will save approximately $100 annually under the new prices.

ComEd customers in Illinois can expect to see a drop in electricity prices as big as 7.5 percent, or $6.36 per month, beginning in June 2009. A dramatic drop in the cost of electricity purchased through a competitive procurement process is responsible for the decrease in residential electricity prices.

Residential customers of Baltimore Gas & Electric will see their monthly electricity rates drop beginning October 1, 2009. Commercial and industrial customers of BG&E could potentially see their rates drop as much as 18 to 33 percent as a result of recent competitive power procurements.

ATLAS SCINERGY, INC ANNOUNCES SPECIAL PROGRAM FOR ILLINOIS RENTAL PROPERTY OWNERS ASSOCIATION MEMBERS PROGRAM WILL HELP REAL ESTATE INVESTORS REDUCE OPERATING COSTS

Chicago, IL - Energy expenses account for one-third of a typical commercial real estate operating budget, making energy the industry's largest operating expense. A recent economic report stated that "Many large retail and office-building owners are paying $300,000 or more in increased electric and natural gas costs for common areas compared to five years ago. In addition to reducing net operating income, these increased costs reduce the market value of real estate. With a market capitalization factor of 8, a building owner paying an extra $300,000 in energy costs is also losing $2.4 million in capital value of the real estate. These calculations become even more important as the recession increases vacancy rates and puts downward pressure on rents." Apartment complexes and residential properties face the same harsh reality of the increasing energy prices and tough competition for rentals.

In response to this economic reality, Atlas Scinergy recently announced a special program that will help members of the Illinois Rental Property Owners Association (IRPOA) fight the recession. Through Atlas Scinergy's Gold Standard Donations Program, IRPOA members will have access to a suite of cost-management services, while raising funds for IRPOA's initiatives.

In the real estate industry, the Illinois Rental Property Owners Association's mission fits well with Altas Scinergy's goals. IRPOA works to ensure that the needs of residential property owners are heard on legislative issues, and through its member groups it provides education helping owners to learn to operate their properties more effectively. "Atlas Scinergy's Donation Program demonstrates a compelling financial advantage for IRPOA members," stated Jane Garvey, board member and founding President of IRPOA. "Not only does the program help real estate owners keep energy costs in check," she continued, "it also helps members reduce a variety of other costs that real estate owners typically overlook."

Atlas Scinergy strongly believes in "giving back" to a community, group or non-profit organization. The Gold Standard Donations Program puts this passion into action. Through this program, Atlas Scinergy will make a donation to an organization, for each of its members that signs up as an Atlas Scinergy client. This allows members of an organization to "do well by doing good." The member's organization receives much-needed funding, and the member receives savings.

About IRPOA

IRPOA is currently working on many issues in Springfield. Landlords are an easy target, as they do not have a legislative voice commensurate with their investment in a community. Fines, fees, and taxes are being added to fund out of control budgets. IRPOA monitors proposed legislation, alerts its members, and speaks out when things affect rental property or real estate investments. In addition, Illinois is experiencing an upsurge in legislation that targets the property owner as the root cause of problems. Initiatives to control crime and blight in communities are resulting in proposals to shut down properties as chronic nuisances if they have an inordinate number of police calls. IRPOA is working to ensure that legislators recognize that all parties need to be held responsible for their actions. If tenants commit crimes, they need to be held accountable. If police and prosecutors fail to do their jobs, they need to be held accountable. And if landlords turn a deaf ear to problems, or fail to maintain a reasonable maintenance standard, they need to be held accountable. With the help of a paid lobbyist, an active volunteer Political Action Committee and a host of grassroots support, IRPOA monitors approximately 7000 pieces of legislation per year, and actively works on 20 to 30 bills that will have an effect on its members and their properties or profitability.