Utility marketers ready new products for competition

The increasing deregulation of the $200 billion-a-year electric utilities business is compelling utility marketers to think about the products that they can develop to capture market share in the new environment. As states across the country open up competition in the market, utilities are responding by creating new products and brands that will attract the interest of customers. Streamlining is already being observed in the industry, with companies trying to improve efficiency of operations and promoting innovation. Many firms in the electricity sector, as well as in the $70 billion-a-year natural gas industry, are choosing to merge or enter strategic alliances to achieve economies of scale. Other firms are transforming themselves into utility providers by hiring commodity traders. In the coming years, utilities may come to provide such nontraditional services as cable TV or Internet access and household appliances sales.