New Hampshire Retail Competition Pilot Program and the Role of Green Marketing: Topical Issues Brief

Most states in the United States are involved in electric industry restructuring, from considering the pros and cons in regulatory dockets to implementing legislative mandates for full restructuring and retail access for all consumers. Several states and utilities have initiated pilot programs in which multiple suppliers or service providers may compete for business and some utility customers canchoose among competing suppliers. The State of New Hampshire has been experimenting with a pilot program, mandated by the State Legislature in 1995 and implemented by the New Hampshire Public Utilities Commission (NHPUC), before it implements full retail access. Green marketing, an attempt to characterize the supplier or service provider as environmentally friendly without referring to theenergy resource used to generate electricity, was used by several suppliers or service providers to attract customers. This appeal to environmental consumerism was moderately successful, but it raised a number of consumer protection and public policy issues. This issue brief examines the marketing methods used in New Hampshire and explores what green marketing might mean for the development ofrenewable energy generation. It also addresses the issues raised and their implications.