There are many misconceptions when it comes to understanding deregulated energy. Many people mistakenly suppose that in a deregulated power industry, electric utilities operate completely free from any regulations. However, this is not the case. In Texas, deregulation simply refers to the fact that electric consumers have a choice when picking the utility company that provides their electric service. Electric utilities still operate under the governance and oversight of state authorities, including the Public Utility Commission of Texas (PUCT.) The PUCT regulates many aspects of the electric utility industry, including requiring all retail electric providers to publish residential rates regularly, supervising the rates charged to customers and governing the way that electric service contracts are structured.
In a state with a regulated power industry, each location within the state is served by a specific electric utility. Consumers in that area must purchase electric service from that utility company such as Texas electricity Ambit Energy , or find an alternative way to power their homes. Only allowing one service provider per area serves to destroy competition between power companies because each company effectively holds a monopoly over all the customers in their service area. There is little incentive for a company to find ways to lower rates or improve service because consumers have nowhere else to go for electric service.
In a deregulated state like Texas, consumers in most areas of the state are free to choose among the many electric utilities serving their community. In major metropolitan areas, twenty or more different service plans may be available. Each power company operates in competition with the other companies in the areas served, and electric service plans are not one-size-fits-all. Utility companies attempt to attract customers with low rates, favorable contract terms and other extra perks. When a customer chooses to switch service providers, the only change that they will see is that their power bill is issued by a different company. Power service is not suspended during the transition period, and the electricity provided by the new company will be carried on the existing service lines. Power lines throughout Texas are maintained by a designated transmission and distribution service provider (TDSP) under the oversight of the PUCT.
Deregulation is not as scary as it may sound. In fact, it benefits many customers because it provides freedom of choice and competition between providers. Texas is only one of several states that have chosen deregulation for electric service providers operating within their state boundaries.
September 25th, 2013
Going green with renewable resources is one of the best things a family can do to save the planet and combat unhealthy air pollution. Our current energy structure depends heavily on fossil fuels that pollute our environment instead of renewable resources that don’t.
Supplies of the cleanest and most easily accessible fossil fuels are declining; most scientists think pollution from using them is responsible for climate change. In addition, the medical community links increased incidences of asthma and (more…)
July 12th, 2013
With a little research, digging up the best renewable resources we can use is not difficult. It is possible to use Earth-friendly renewable energy in businesses and homes alike. Not only does renewable energy not run the risk of depleting our energy resources like fossil fuels, it provides for continuous energy needs in an environmentally safe way. So, what are the best renewable energy resources for the home or business?
Renewable energy sources harness natural (more…)
July 10th, 2013
The current energy structure in our country was around long before the energy crisis. With flat rates for energy prices throughout the day, there is no incentive for people to use high-energy devices during low-energy demand periods. This leads to power plants having to constantly produce large amounts of energy at all times, even when there is no demand for it. When there is not enough energy during periods when everyone wants to use their air conditioner, washing machine, and television, rolling blackouts occur.
Moving to SmartGrid technology can help change this infrastructure by providing incentives to run appliances during (more…)
July 7th, 2013
The United States definitely has a dependency on foreign oil. Experts have been saying that it is only a matter of time before foreign oil supplies are depleted. The United States is really under pressure to become energy independent before time runs out.
The best way to become energy independent is to dip into any reserves of alternative energy resources on U.S. soil. There have been massive natural gas drilling projects throughout the U.S. with the hope of cutting down the import of foreign oil. However, finding the right drilling (more…)
July 5th, 2013
The U.S. energy crisis is a very complex problem. The problem is not a shortage of energy, but it is deciding what forms of energy can be used and still reduce carbon dioxide emissions to the atmosphere. The forms of energy must also be inexpensive enough that the economy will not be disrupted. We have a domestic coal supply that will last about 500 years, but coal is the most polluting form of energy.
Natural gas is touted (more…)
July 1st, 2013