The Center for the Advancement of Energy Markets has issued the Retail
Energy Deregulation Index 2000 (RED Index).

The RED Index shows that
*  Pennsylvania and New York, with scores of 59 and 58 out of 100,
respectively, lead the nation in customer choice.
* California, the pioneer in electric restructuring, surprisingly ranks only
11th, with a score of 34.
*  Texas, a relative newcomer to restructuring, leads the South with a score
of 45 and a ranking of seventh in the nation.
* The national average score is 18, but that rises to 20.4 when weighted by
sales volume and 23.3 when weighted by revenue.

The Center for the Advancement of Energy Markets (CAEM) is an independent,
nonprofit think tank whose mission is to promote an effective transition
from the monopoly model of regulation to the competitive or customer choice
model. Ken Malloy, President of CAEM and primary author of the RED Index,
has been a public official with the Federal Energy Regulatory Commission,
the Illinois Commerce Commission, and the U.S. Department of Energy.

Is there a correlation between states with higher electric prices and
states' progress toward restructuring?  There is a stronger movement in
states that rank higher in average price, since all contiguous states
scoring in the top 10 for price also were in the top 20 in the RED Index.
But this movement is no confined to high priced states.  Nevada, Montana,
and Texas all are below average states on price but are ranked in the top 10
on the RED Index.

RED Index 2000 is a 90-page study that measures the progress states have
made in moving from the monopoly model of public utility regulation to the
competitive model. A RED Index score of 0 represents the monopoly model and
a score of 100 represents complete and effective implementation of the
competitive model. The index focuses on retail competition and currently
only covers electric restructuring, and will be updated twice a year.

CAEM developed the RED Index by identifying 18 key attributes that are the
foundation for an effective transition to competition. These attributes were
weighted and scores were assigned to the different options that states have
regarding that attribute. CAEM then conducted research to determine the
option chosen by each state on each of the 18 attributes. The index scores
were then calculated based on the methodology and research.

CAEM provides the RED Index at no fee to state public utility commissions,
state energy offices, consumer organizations, governmental agencies,
educational, and nonprofit, public interest organizations. CAEM funds the
study by charging a fee of $495 to private sector companies.

Private sector organizations can order a copy from redindex@caem.org,
through the center website at www.caem.org, or by calling 703-250-1580.

Please feel free to contact me with any questions.

Ken Malloy
President
Center for the Advancement of Energy Markets
5765-F Burke Center Parkway (PMB333)
Burke, VA 22015-2233
o 703-250-1580
h 703-239-8862
f  248-928-5040
e kmalloy@caem.org

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