PPC working on client split plan as NOME auctions alternative

The key details of an endeavor by main power utility PPC to split and sell part of the corporation with clients on board to rival electricity suppliers, as part of the utility’s effort to meet the bailout’s market share contraction objective, will be shaped by a consulting firm to be hired by the end of the year.

A balanced solution will be sought that may satisfy the needs of both PPC and competitors, who have generally expressed reservations about the plan.

Four key aspects will be focused on to help make the effort a success, energypress sources noted.

Firstly, the consulting firm, along with PPC officials, will seek to discuss and take into account the needs of candidate buyers in an effort to make the portfolio as appealing as possible.

Secondly, the PPC clients to be split from the utility and offered as part of the breakaway package will be chosen by the consulting firm following consideration of a number of criteria, including consumer profiles, profit margins and electricity bill payment record punctuality.

Thirdly, an energy mix offering specific energy amounts will be designed and offered along with the clients.

The clients to be included in PPC’s breakaway package are expected to represent 7 percent of the utility’s current client base, or between 400,000 and 500,000 clients.

PPC’s split-and-sale plan is obviously being promoted by the utility as an alternative to the just-introduced NOME auctions, a bailout requirement seeking to break the utility’s dominance by offering other traders access to PPC’s low-cost lignite and hydropower sources.