The world has become obsessed with climate change and green initiatives . 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 state have it and all are different on how the implement it. Pennsylvania led the way in 1995 as the nation's first state to legislate retail electric market reform. and industrial customers in Pennsylvania will have a true choice for their commodity electric "supply" service. How could that be?
A major differentiator between telecom and energy deregulation is that state regulators have had to deal with the fact that most electric utility companies owned and operated 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). Because of this rate caps were developed and set at fixed levels. 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.
Now that rate caps have fallen and rates have sky rocketed people need to look to Energy Brokers keep rates and prices down on utilities.
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.
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CSMS Marketing are Brokers of Energy
CSMS Marketing are Brokers of Energy
Energy Brokers of CSMS Marketing, LLC
Posted by scott22smith
at 12:38 PM EST
