deregulation booklet 032009
TRANSCRIPT
d e r e g u l a t i o n
o r a s l o n g a s m o s t o f u s
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 deregulation, one company provided all aspects of your residential energy service—generation/production, sales, delivery, billing and support. After deregulation, some or all of these components have been separated. The rules differ from state to state, but generally speaking, the power plants, salespeople, retail suppliers, billing companies, delivery companies (the ones who own the poles and wires) and pipeline owners (for natural gas) are no longer a single company. In some states, like Texas, those are all separate companies now.
The retail energy industry in the United States generates over $474 billion in revenues annually, and this creates a huge opportunity in deregulated energy markets. Ambit Energy competes as a retail energy company, providing electricity service in Texas, natural gas service in Illinois, and both electricity and natural gas service in New York. Other states will follow in the months and years to come.
In areas where energy is
deregulated, customers have
the power to choose the
company from which they
buy electricity and/or natural
gas. Ambit Independent
Consultants can take advantage of this one-time
window of opportunity.
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Energy Deregulation: A Window of Opportunity for Ambit Consultants
In Texas alone, retail electricity consumers spend over $24 billion per year. In fact, Texas is the 11th-largest electricity market in the world, with more than 7.1 million customers who can now choose their electricity provider. In New York the available market is $7 billion, with 5 million potential customers in the areas we serve. And in Illinois the market is $2 billion, with 2.1 million potential customers within the Nicor Gas service area. That means Ambit Energy can compete for its share of $33 billion among 14.2 million potential customers! The average energy bill for households where Ambit Energy competes is $100 to over $250 a month. Millions of customers are still paying the highest rates in the marketplace, and over 60% of customers who can choose to “switch and save” have not taken advantage of the opportunity.
The deregulated energy environment opens windows of opportunity for everyone. Ambit Energy has seized upon one of these opportunities by developing and implementing a proprietary system that enables extremely efficient bulk energy purchasing. This system allows Ambit Energy’s purchasing team to pinpoint our customers’ energy usage needs in the short-term and long-term energy markets. By adhering to these proprietary processes, Ambit Energy promotes long-term stability for the company in a rapid-growth environment, and assures the availability of a reliable, competitively priced energy supply. In turn, this creates significant cost savings to pass along to our customers.
a m b i t e n e r g y, l . p . 3
First Choice PowerSimply Better
TM nicor®
I n C u m b E n t P r O v I D E r s
Generation/Production Delivery Energy retailer
Incumbent providers no longer benefit from being
the monopoly that provides service to residential
customers where energy is deregulated. In deregulated
areas, the functions of the old utility are generally
divided into three separate entities: 1) Generation/
Production, 2) Delivery, and 3) Energy Retailer. Under
deregulation, customers may choose their own energy
retailer. Whichever retailer a customer chooses, energy
is still delivered by the same company that always
maintained the wires (electricity) or pipelines (natural
gas). The retailer buys energy from the generation and/
or production companies at competitive prices and
passes on the savings to residential energy customers.
Ambit Energy is an energy retailer that offers our
Consultants the opportunity to make money by helping
customers save money on their monthly energy bills.
Energy Deregulation: How it Works