Everyone is going crazy with making energy brokers a hot topic. Many of us who participated in the pioneering days of telecom deregulation (e.g., the breakup of the Bell System in the '80s and the Telecom Act of '96) are taking notice of energy market restructuring.
Most think energy deregulation is going to be the same as tecom deregulation but it is not. As of today, 17 states and the District of Columbia have reasonably competitive markets, although there's a great variance in methodologies and regulations among them. Pennsylvania led the way in 1995 as the nation's first state to legislate retail electric market reform. However, it will not be until January 2011 that the majority of commercial . How could that be?
Energy deregulation is different because the electric utility companies own and operate thier own power generation plants. The first order of business was to get the utility company to focus soley on distribution to local markets. The sale of generation facilities typically resulted in high stranded costs for the utility companies (and their ratepayers). As a result, in many areas, the market cost for power (commodity supply service) was set at fixed levels through rate caps that existed for several years or more. Over the years the market has changed and the rates have increased high than the caps. As a result, these markets were competitive in name only.
It wasn't until the expiration of rate caps that markets experienced true competition for commodity supply service - and only after experiencing price shock with the move away from rate caps that had been in existence for several years and were below current market prices, Now Energy Brokers can help businesses and residents save substancial money.
As we all know, telecom is famous for its acronyms and typically has offered a consistent naming convention for its competitive pioneers. No matter where you were in the United States, you knew what was meant by the terms IXC, CAP or CLEC. Common terminology is uncommon in today's retail electric markets, as each state legislature and public utility commission establishes its own version of restructuring and its own lexicon. For example, a competitive supplier in New York is referred to as an Energy Service Company (ESCO). In Pennsylvania, it's an Electric Generation Supplier (EGS). Meanwhile, in Texas, the competitive supplier is known as a Retail Electric Provider (REP)}.
For this complicated world of deregulation, you need Energy Brokers to help find the best situation for your company or home.
Resources:
The Major Benefit To Having An Energy Broker
CSMS Marketing, LLC- Ameica's Premier Energy Brokers, Preserves People Money On Their The Electricity And Natural Gas Bill.
Energy Brokers Saves People Money
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