Utility-Marketer Partnerships: An Effective Strategy for Marketing Green Power

摘要

This paper explores whether partnerships between utilities and independent marketers are an effective strategy for marketing green power. We present case studies of voluntary and mandatory partnerships covering green power program design and implementation in both regulated and restructured electricity markets. We also include perspectives (based on interviews) from utilities, marketers, and regulators involved in developing and implementing these partnerships. From these case studies and interviews, we describe lessons learned about developing effective partnerships, including such issues as respective roles in marketing and administration, product branding, and contract and incentive structures. Based on experience to date, strategic partnerships between utilities and marketers can be an effective approach to marketing green power. Partnerships leverage the sales and resource procurement experience of marketers and the utility's reputation and access to customers. Further, partnerships can create greater incentives for success because marketers have a vested financial interest in maximizing customer participation and green power sales. Utilities may benefit from teaming with marketers, if they have limited experience in procuring renewable energy supplies, marketing renewable energy or other value-added products, or are interested in reducing the risks of offering renewable energy options to their customers. In states with competitive electricity markets, partnerships between default suppliers and marketers provide greater choices for residential and small commercial customers, who may otherwise be hesitant to switch suppliers. However, partnerships can fail if either the program or the partnering arrangement is not properly designed and implemented. It is important that both parties be adequately compensated and actively engaged in the program. Because marketers are typically paid for performance, they are most likely to invest their time and energy in programs where the utility is supportive and actively works to make the program a success. Partnerships in which both parties are vested in the success of the program have been most effective.