Do you find yourself asking, “What is Deregulation, and what does it mean for me?”
Legislatures and the public utility commissions of many states have opened retail competition for electricity and natural gas supply. The measures allow consumers of electricity and natural gas to choose their supplier (generation) while the delivery of the energy (transmission and distribution) will still be the responsibility of the incumbent (regulated) power company.
Consumers now have the power to choose an electricity or natural gas supplier of their own liking. The single most important consideration in this new deregulated market is that there are material differences between the various electricity and natural gas supply products offered by the competitive service providers and especially vs. the standard offering made by the incumbent utility from which you have purchased energy historically.
Consumers now have the power to choose an electricity or natural gas supplier of their own liking. The single most important consideration in this new deregulated market is that there are material differences between the various electricity and natural gas supply products offered by the competitive service providers and especially vs. the standard offering made by the incumbent utility from which you have purchased energy historically.
FAQ's
What are the benefits of Electric Choice?
Competition in other industries has often brought lower prices and innovative, new products and services. Having more control over your buying decision should make it easier to determine what matters most to you, whether it's price, renewable energy, customer service, or simply a name you know.
Electric competition also should help the environment because energy providers must offer some energy from renewable energy sources. Renewable energy – such as wind, solar, hydroelectric and biomass (gas released from landfills) – produce less air pollution than sources that rely on burning coal or natural gas.
Electric competition also should help the environment because energy providers must offer some energy from renewable energy sources. Renewable energy – such as wind, solar, hydroelectric and biomass (gas released from landfills) – produce less air pollution than sources that rely on burning coal or natural gas.
How does Electric Choice affect electric rates?
Energy commodity rates fluctuate based upon supply, demand, weather and generation resources within each region. Typically, eastern states have more traditional coal based generation sources, while many southern states such as Texas, are more heavily fueled by natural gas fired plants. Regardless of where your company resides, electric deregulation has resulted in extreme volatility since electricity cannot be stored like other traded commodities. Electricity is the most volatile of all traded commodities, and, as a result requires more in depth risk management strategies. As many companies in the airline industry have recently experienced, minimal or improper hedging strategies can result in extreme variances in energy costs from one year to the next.
Do all companies have the ability to choose their electric provider in a deregulated state?
No, each state has different rules and regulations. In some states, city-owned utilities and member-owned cooperatives have the option of giving their customers a choice of providers, or keeping their grid closed to outside competition.
What has changed in electric service?
You can choose to buy your energy from a different provider than the original incumbent provider for your area. These companies are commonly referred to as REP/ARES/ANDS.
What has stayed the same in electric service?
Your current TDSP/TDU or "local utility" will continue to deliver electricity/natural gas to your business. Your local utility will still be responds to service interruptions and continue to maintain the delivery info structure . You will continue to receive the same reliable service you are used to with your local utility, regardless of which REP/ARES/ANGS you receive the energy from.
Who reads my meter once I switch?
The same people you would call today! Regardless of which Retail Electric Provider and/or Natural Gas Provider you choose, the actual delivery ("transmission and distribution") of the energy is still provided by your local Transmission and Distribution Service Provider, (also referred to as the "TDSP or TDU"). Your TDSP/TDU will continue to be responsible for maintenance, meter that delivers and measures the energy consumed by your home or business, for reading your meter and providing amount of energy that you consume to your REP/ARES/ANGS, and for restoring service when there is an emergency.
What if I am currently in a contract?
U.S.E.C. LLC works with many REP/ARES/ANGS’s who offer “Forward Locking” of your contract. This option allows a customer to forward lock their new contract for up to 1 year, enabling the customer to complete their current contractual obligations while simultaneously taking advantage of the market today. This option can ensure a customer is not vulnerable to market conditions when their contract expires; providing them price protection, peace of mind, and budget certainty in an uncertain market.
Who do I call if I have a power outage?
If you experience an emergency related to your electricity service or a power outage, call the number printed on your electric bill for repairs and emergencies. The local TDSP will repair your service or restore your power just as they will your neighbors' service - regardless of your Retail Electric Provider. There is no special treatment or priority in service restoration for customers of any particular Retail Electric Provider.
What if I am not satisfied with the options presented to me?
All we ask for is to have a chance to put numbers in front of you, and numbers don’t lie. If you like them great we will help you out if not, not a big deal at least we tried right.
With competition, will the reliability of my electric service change?
No, no matter which energy provider you choose, your energy will continue to be delivered safely and reliably by the local utility, a company regulated by the PUC within each state.
How soon can I have my power turned on if I am completing a move-in?
If you currently do not have service in your name with another supplier, the earliest will be three business days, excluding holidays and weekends, from the day you enroll.
What is a kilowatt-hour (kWh)?
A kilowatt-hour (kWh) is a unit of measurement for electric energy (usually expressed in kilowatts or kW) over a time period. Most electric rates are priced by kWh. By knowing your kWh usage and your cost per kWh, you can calculate the cost of operating electric equipment.
What is a Therm?
A therm is a measurement of the amount of heat energy in natural gas, equal to 100,000 BTUs. A BTU, or British Thermal Unit, is the quantity of heat required to raise the temperature of one pound of water by one degree Fahrenheit.
What is a BTU?
A British thermal unit (Btu) is a measure of the heat content of fuels or energy sources. It is the quantity of heat required to raise the temperature of one pound of liquid water by 1 degree Fahrenheit at the temperature that water has its greatest density (approximately 39 degrees Fahrenheit).
What is an ESI ID?
Electric Service Identifier (ESI ID) is a unique number created by your local Texas electric utility for your place of residence. U.S.E.C. LLC uses this number to ensure that your local electric utility company places the correct service address in your name. The meter number and ESI ID number are two different things. You may have more than one ESI ID if you have several different service addresses.
Do I have to notify my current provider of the switch?
Each state has rules and regulations that apply to that specific state, it is important to work with a broker who is verse in the market rules. Some markets are set up in a way that there is no notification required, but there are exceptions and depending on the terms and conditions of the service agreement a customer could be responsible for 30 day notification prior to contract expiring, a supplier will auto-renew an agreement if no such notification was received.
Definitions:
TDSP - Transmission Distribution Service Provider
TDU - Transmission Distribution Utility
REP - Retail Electric Provider
ARES - Alternative Retail Electricity Supplier
ANDS - Alternative Natural Gas Supplier
ESI - Electric Service Identifier
ERCOT - Electric Reliability Council of Texas (Grid)
PJM - Pennsylvania Jersey Maryland (Grid)
TDSP - Transmission Distribution Service Provider
TDU - Transmission Distribution Utility
REP - Retail Electric Provider
ARES - Alternative Retail Electricity Supplier
ANDS - Alternative Natural Gas Supplier
ESI - Electric Service Identifier
ERCOT - Electric Reliability Council of Texas (Grid)
PJM - Pennsylvania Jersey Maryland (Grid)