Ambit Energy Illinois Prelaunch Update As of April 15th

Last week, the Administrative Law Judge who is assigned to our case issued a "Proposed Order" stating her intent to approve our application to become an Alternative Gas Supplier in the Nicor Gas service area. Jere and I consider this a positive step in the approval process, but we want you to know it is only one step in a series of steps that are still required before we can begin enrolling customers in your area for natural gas service.

Until the judge issues a final order, and the Illinois Commerce Commission votes to approve our application, Ambit Energy will continue with our Illinois Pre-launch activities. We'll keep you informed on our plans for a live launch as these steps are taken. For now, this is all the information we have.

Meanwhile, take full advantage of the time you have to build a strong Ambit Pre-launch organization so that when we do open for business in Illinois, you will be well-positioned in this new market.

Things are moving in the right direction. It's a great time to re-focus your efforts. Thank you for your patience and for all you are doing to make Ambit a success!


Best regards,

Chris Chambless

NYERS GET $HOCKED
CON ED ELECTRIC BILL 63% MORE THAN UPSTATERS PAY

By BILL SANDERSON


March 17, 2008 -- Con Ed's residential customers in New York City and Westchester pay 63 percent more for electricity than people who live just 60 miles north of Manhattan - a difference of more than $500 per household per year, a new state survey shows.

And with state utility regulators set to approve a big hike in Con Ed's rates on Wednesday - along with soaring oil and natural-gas prices - the disparity between upstate and downstate is about to get a lot worse.

Con Ed residential customers who used 500 kilowatt hours of electricity in January saw a bill of $110.20 - 63 percent more than the $67.66 charge paid by customers of Central Hudson Gas & Electric.

In fact, Con Ed charges more in every category than any upstate private utility. The state's survey doesn't include Long Island, which is served by LIPA, a nonprofit public utility.

New Yorkers' electric bills include a supply charge, for the actual electricity, and a delivery charge, which covers a utility's wires, transformers and other infrastructure. Con Ed residential customers pay top rates in both categories.

Con Ed residential customers' bill for January breaks down to $62.78 in supply charges and $47.42 for delivery.

Central Hudson customers' supply charge was $35.54, their delivery charge $32.13.
One reason for Con Ed's high prices is that because of transmission-line bottlenecks, it lacks access to electricity from cheaper upstate power plants.

"The southeast portion of the state is more expensive because it's more natural-gas and oil-fired electricity," said Ken Klapp, a spokesman for the New York Independent System Operator, which supplies a large portion of Con Ed's power.
 
Another reason cited by Con Ed, is "the higher costs of maintaining a vast, complex, underground system - in addition to labor, taxes and other costs that exist downstate."
Before the state deregulated electricity in 1999 and forced Con Ed to sell its generators, its prices were controlled by the state Public Service Commission.

Now only the delivery charges are controlled by the state. The cost of electricity itself depends on Con Ed's deals with generating companies and auctions held by the Independent System Operator.

Con Ed's high prices are a failure of deregulation, said Gerald Norlander of the Public Utility Law Project.

"The PSC has no viable plan to meet future electricity needs of Con Edison customers at a reasonable price," Norlander said.

State officials are expected to boost Con Ed's delivery charges by around 17.5 percent this week.


bill.sanderson@nypost.com