Direct Energy Responds To Pennsylvania Public Utility Commission Ruling On First Energy And Allegheny Power Merger

Harrisburg, PA (2/24/2011) - Leading North American energy retailer Direct Energy has responded to the Public Utility Commission ruling - which did not support the company's proposal to enhance competition in Pennsylvania, specifically the First Energy and Allegheny Power's Pennsylvania service territories.

"Direct Energy put forward a robust proposal to harness the benefits of competition for Pennsylvania electricity customers in First Energy and Allegheny Power's service area," said Steven Murray, president of Direct Energy's residential business.

"Today's result is disappointing, especially for the 2 million residential and small business electricity customers who will now face limited choice for their energy needs and not be eligible to receive a rebate of up to $500. The positive economic impact of these rebates, estimated at between $300 million to $1 billion and funded by the private sector, to central and western Pennsylvania customers would have been dramatic and a welcomed boost to the state's economy" said Murray.

As reported by a Zogby International poll of First Energy and Allegheny Power customers - 91% of those surveyed supported the Direct Energy plan to drive down rates by increasing competition and 89% of surveyed consumers also responded that it was important to be given more choices when deciding on electricity suppliers.

"We had hoped regulators would have pushed harder in favor of delivering on their original vision of a robust, restructured energy market. Direct Energy will continue to advocate choice for electricity customers - as where competition thrives, consumers win" added Murray.

The Company has stated its intentions to continue growing and investing in the state and recently announced as many as 70 new employees will be hired. Direct Energy's employment levels in Pennsylvania have increased from 225 to approximately 900, in just over two and a half years.

"Direct Energy welcomes the Public Utility Commission's announcement of an investigation of regulatory and legislative initiatives needed to foster competition in Pennsylvania and we are hopeful that this review will be concluded and recommendations implemented via an expedited process", said Murray.

"We also want to take the opportunity to thank Commissioner Cawley for his dedicated years of service as Chairman to the Pennsylvania Public Utility Commission.

About Direct Energy

Direct Energy is one of North America's largest energy and energy-related service providers with over 6 million residential and commercial customer relationships. Direct Energy provides customers with choice and support in managing their energy costs through a portfolio of innovative products and services. A subsidiary of Centrica plc (LSE:CNA), one of the world's leading integrated energy companies, Direct Energy operates in 46 states and 10 provinces in Canada.

For further information, please contact:

Claire Monaghan
Direct Energy
1-281-222-6033
Claire.Monaghan@directenergy.com