What is Energy Deregulation?

March 10, 2010

For as long as most of us can remember, public utilities have been operated as regulated monopolies. In the last few years, state by state, those utilities have been, or are being, deregulated. What does that mean? Before energy deregulation, one company provided all aspects of your electric service–generation, sales, delivery, billing, and support. After deregulation, some or all of these components were separated. The rules differ from state to state, but generally speaking, the power plants, salesmen, retail suppliers, billing companies, and delivery companies (the ones who own the poles and wires) are no longer a single company. In some states, like Texas, those are all separate companies now. This benefits you because now you have choices. Your options are not dictated to you by one company.

Ambit Energy has stepped up to the plate, and now competes as a retail energy company. Furthermore, Ambit Energy has created a dynamic marketing plan that allows its Independent Consultants to gather customers by simply educating their family, friends, and acquaintances about the benefits of rate competition in home energy! It is called one-to-one or network marketing and we believe it is the most powerful business model ever conceived. Anyone can do it.

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Benefits of Energy Deregulation

March 10, 2010

What Are The Benefits of Energy Deregulation?

1. Energy deregulation creates a level playing field for future industry rivalry and competition by ensuring that all companies have an equal chance to provide service to electricity consumers.  Basically deregulation means that the consumer, not the provider, will now call the shots in the electricity market.

2. Energy deregulation lowers prices for residential consumers by empowering them to choose their electricity supplier. What if your only soda option was Pepsi? If Pepsi is your thing then you’d be happy, but if you’re a fan of Coke or Dr. Pepper, you wouldn’t be happy with Pepsi as your only option would you?

3. Energy deregulation equalizes unjustifiable regional differences in electricity prices. While the average price of electricity in the U.S. is about 7 cents per kilowatt-hour (kWh), it varies widely from state-to-state. This range is from about 5 cents to 10 cents per kWh. Deregulatory initiatives that are underway in many states foreshadow the benefits under nationwide deregulation.

4. Energy deregulation increases jobs and benefits local communities. Unfortunately many large utility companies that have a monopoly in their market do not want consumers to have the ability to choose alternative providers. These companies have used scare tactics, intense lobbying and outright deception to convince many local communities that deregulation will hurt them.

5. Energy deregulation benefits the environment by empowering electricity consumers to be smarter, more demanding shoppers. This means that power companies will be held to higher standards of efficiency and cleanliness. This will ensure that your community is provided with the power they want without increased pollution.

6. Energy deregulation increases service reliability. Under the regulated monopoly model, consumers cannot change to a new provider when their current provider proves unreliable. Under competitive conditions, failure in service will be met with consumer rebellion and subsequently loss of profit, which then strengthens the incentive to maintain higher standards of service.  Just as deregulation and competition in other industries have resulted in improved safety and reliability, energy markets will benefit when liberalization occurs.

What is an ESCO

March 10, 2010

Energy Service Company or ESCO

Source: http://en.wikipedia.org/wiki/ESCo

Simply put, an ESCO (Energy Service Company) is a business that finances projects designed to improve the energy efficiency and maintenance costs for other companies. In general, ESCO’s act as project developers and oversee a wide range of tasks including:

  • Arranging financing for energy efficient projects.
  • Installing and maintaining the energy efficient equipment involved in the project.
  • Measuring, monitoring and confirming that the project is actually saving money.
  • Guaranteeing that the project will save the amount of money it is supposed to save.

The ESCO uses a wide range of cost-effective measures to achieve energy savings. These measures often include the use of high efficiency lighting, high efficiency heating and air conditioning and centralized systems to manage energy.

What makes ESCOs different from other companies that offer energy efficiency is the concept of performance-based contracting. When an ESCO takes on a project the company’s compensation and often the financing of the project is directly linked to the amount of energy that is actually saved.

Another very important part of energy efficiency projects is the education of the customer about their own energy use so they understand the patterns they have developed regarding how they utilize energy. This is important because the ESCO wants to develop a healthy relationship with their customers.

In addition to the financial benefits realized by ESCO customers through energy and maintenance cost savings, this growing industry has had a profound impact on the U.S. economy. New jobs have been created, within the ESCOs and through the use of independent contractors. The future for ESCOS and their customers is bright and there is an increasing global need to take advantage of and utilize energy efficiency projects on a widespread and global scale.

Ambit Energy:

Switching Energy Providers FAQ

March 9, 2010

Frequently Asked Questions about Switching Energy Providers

Here is some information I wanted to share with you. The way consumers choose energy providers is changing, and I understand that important choices like these can sometimes be confusing. I want Ambit to be an easy choice for you. Here are some of the most frequently asked questions I have personally received from people like you who are considering choosing Ambit.

What has changed in electric and natural gas service with deregulation?
You can now choose to buy residential energy from a different supplier than the original provider for your area. These companies are called Retail Electric Providers (REP) in Texas, Energy Service Companies (ESCO) in New York, and Alternative Gas Suppliers (AGS) in Illinois.

How does Ambit Energy reduce my monthly bills?
Deregulation allows REPs, ESCOs, and AGSs – like Ambit Energy – to buy energy wholesale from competitive providers and pass the savings along to customers.

If I switch, where will my energy come from?
Your current electric utility or Local Wires Company will continue to deliver your electricity. Your power will come from a regional power pool that includes energy from traditional power plants and other sources like wind, water, sun and natural gas. Your Local Distribution Company will continue to deliver your natural gas.

Will the reliability of my residential energy service change with deregulation?
No. No matter which retail supplier you choose, power will continue to be delivered safely and reliably by a company still regulated by the utility commission or agency of your state.

What happens if I have an emergency or outage?
Because your local utility is still responsible for maintenance and repair, you will call these regulated firms in the event of an emergency or outage at the number provided on your bill.

Does everyone have the option to choose their energy supplier?
No. City-owned utilities and member-owned electric and/or natural gas cooperatives have the option of giving their customers a choice of providers, or keeping things the way they are today.

What happens if my Retail Electric Provider (REP), Energy Service Company (ESCO) or Alternative Gas Supplier (AGS) goes out of business?
You will not be without energy. You should receive a notice from your retail provider giving you time to select a new provider. If not, your service will revert to your previous provider or a provider designated by the state utilities agency. Rest assured, Ambit Energy is financially solid and in no danger of going out of business.