About energy deregulation
Under deregulation, suppliers purchase electricity or natural gas at wholesale and may be able to sell it at a lower price. The consumer continues to have delivery provided by their current local utility.
Benefits to the consumer:
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Price protection (with a wider variety of pricing options)
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Competitive prices may now be available to the consumer
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More product plans are available for customers
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Prices may be stabilized for the consumer
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Larger selection of products that support customer needs
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Freedom of choice
RTO determines capacity
Regional Transmission Organizations (RTO) are responsible for maintaining adequate capacity between utility companies
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The RTO serving the Northeaster United States is PJM Interconnection, L.L.C. (servicing all or parts of 13 states plus District of Columbia)
PJM uses a Reliability Price Model (RPM) - Determines Capacity
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Auction process gains commitments from resources
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Sets price for capacity
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Sends price signal to potential developers of generation, demand response and/or transmission.
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Capacity represents the need for adequate generating resources
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Capacity ensures there is enough electric supply to meet peak demand at all times.
components of your electricity price
Bypassable Generation and Transmission Related Elements
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