A decade ago, discussions around electricity deregulation were just beginning to heat up across the country. Energy marketing companies— wholly separate from utilities—were starting to form, and consumers nationwide were learning about the benefits of competition. In the midst of the coming "energy evolution," there were those who saw beyond the initial advantages to the larger possibilities. For small to mid-sized businesses, aggregators would eventually offer the same volume purchase opportunities enjoyed by larger corporations.

One such group is the Mid-Atlantic Aggregation Group Independent Consortium LLC (MAAGIC), the first aggregation group licensed in Maryland and the most active to date. Directions spoke with MAAGIC President Paula Kreuzburg, who's also the Senior Vice President of Operations and Services of the Restaurant Association of Maryland, about the organization's origins, how it serves members and about its relationship with Direct Energy.

Directions: How did MAAGIC get its start?

Paula Kreuzburg: A group of us got together in 1998.We knew electricity deregulation was coming, and we thought that as a group, if we all came together as one, smaller and medium- sized members would get a better price than they would have on their own. So we formed MAAGIC, which is composed of nine different organizations: the Building Owners and Managers Association of Metropolitan Baltimore; the Chesapeake Automotive Business Association; the Health Facilities Association of Maryland; the Maryland Hotel and Lodging Association; the Restaurant Association of Maryland; Printing and Graphics Association; Mid-Atlantic; Maryland Retailers Association; and the Washington, Maryland, Delaware Service Station and Automotive Repair Association. MAAGIC makes the electricity program available to more than 7,000 members of those associations. Currently, 1,300 members actively participate in the MAAGIC Electricity Purchasing program.

Directions: What are the key benefits of the aggregation program for members?

PK: First and foremost, it's about volume buying; you simply get better deals when you have the power of a larger purchasing group behind you. Purchasing electricity is different than buying any other product or service, which is why we created MAAGIC in the first place. By grouping our organization's members into a large purchasing pool, we maximize both the benefits of competition and the advantages our members get from being part of our collective associations. In addition, the terms and conditions of our contracts are a lot better than most small to mid-sized businesses could get on their own.

Directions: Why did you choose Direct Energy as your provider?

PK: We did our due diligence. We looked at and interviewed a number of different energy companies. We looked at issues such as financial stability, overall track record, the way the companies marketed to the industry and other factors. With more than 5 million customers in North America, we felt Direct Energy would give us the competitive edge we wanted to help our members control their costs. The MAAGIC Electricity Purchasing Program has been in place for several years, and we've worked with other suppliers. But for the past two years, working with Direct Energy, the program is more successful than it's ever been. In fact, we just signed another two-year extension with Direct Energy. At the end of the day, what it comes down to is that our work with Direct Energy has helped the members of our organizations that participate in MAAGIC more than get their membership money back. And that helps serves all our ends.

Directions: If you had to offer one piece of advice to a business owner or manager considering joining an energy aggregation program, what would it be?

PK: Look at the due diligence that has been done to choose the company they've selected, so you understand the process and the time and energy spent on your behalf. You're working with an association you're familiar with, so you can be fairly certain it's reputable. And remember that programs like MAAGIC represent an excellent use of your membership.

To learn more about MAAGIC, e-mail Direct Energy at MAAGIC@directenergy.com, call 412-655-7120 or visit Direct Energy