Electricity markets typically either allow customer choice — or they do not. The type of market available to you is generally dependent on where you live and/or operate your business.
POWER MARKET INFORMATION
WHAT IS ERCOT?
HOW DOES ERCOT WORK?
DEREGULATED V. REGULATED ENERGY MARKETS
Regulated Electric Markets
Regulated electric markets are home to vertically-integrated utilities that own or control the power plants that generate electricity, as well as all of the transmission and distribution equipment—such as the poles, wires, and transformers—that is used to distribute electricity to homes and businesses. In other words, you only have one option for your electric utility, who owns both the energy generated and the means to distribute it, and the rates your utility charges you are approved and regulated.
Deregulated Electric Markets
Deregulated electric market utilities are required to divest their ownership in generation and transmission. This means they are only responsible for:
- Distribution, operation, and maintenance from your interconnection to the power grid at your electric meter
- Billing you, the ratepayer, for the delivery of consumed energy to that meter
What this ultimately means is that in a deregulated market, you have a choice of who to buy your energy supply from and how. You pay these certified Retail Electric Providers (REPs) what’s often referred to as the “supply” portion of an electric bill.
A PROPER ERCOT (PV) PROFILE ASSIGNMENT WILL LOWER YOUR OPERATING EXPENSES.
Allocate energy consumption evenly
Proper assignment means energy will be allocated to you evenly across a 24-hour cycle instead of allocating disproportionately the amount of energy to the right time of day.
Eliminate weather sensitivity as a factor
Eliminating weather sensitivity lowers the cost of delivered energy at settlement.
OPTION 1 RETAIL ELECTRIC PROVIDERS
Licensed to serve the masses. Things to consider:
Option 1 Reps
Cost
Term
Services
How We Can Help
OPTION 2 RETAIL ELECTRIC PROVIDERS
Pumpjack Power is the only option 2 REP offering services exclusively to the Oil & Gas Industry.
ELECTRICITY DEREGULATION FAQS
What is deregulation and how does it benefit consumers?
In Texas, there used to be only one choice for electricity based on where you live. If you wanted electricity, you had to buy from the local utility. Everything changed in 2002, when a new state law broke apart the old monopolies and separated the delivery of electricity from the electricity itself. Now, in much of the state, one company reads the meters and maintains the poles and wires that deliver the electricity and many companies now compete to sell the electricity that runs over the poles and wires. As a result, consumers benefit from competitive rates, more product options and greater service levels.
What happens if I have an emergency or power outage, since the market is deregulated?
Contacting your local transmission and distribution utility (TDU), also known as a transmission and distribution service provider (TDU) company, is the fastest way to get a response to an emergency or power outage situation. Utility contact numbers are listed within the ‘Report an Outage’ tab for your reference.
What is the difference between an Option 1 & Option 2 Retail Electric Provider?
An Option 1 Provider offers service defined by a geographic area and the focus of that provider is to grow their portfolio as much as possible by supplying power to as many residential, retail and industrial customers as possible. Most provider(s) currently serving load to the Electric Market in Texas are Option 1. An Option 2 Provider offer(s) service to specifically identified customers, each of whom contracts for one megawatt or more of capacity.
How can Pumpjack Power offer lower rates than many of its competitors?
Simply put, lower risk. Because we are focused on serving load to those in the Oil & Gas industry specifically, who’s usage and demand patterns are non-weather sensitive differing greatly from other weather sensitive Texas consumers, like that of residential, retail, and industrial consumers, we are uniquely positioned to offer a partnership reciprocal in nature that cannot be matched. This is accomplished in many ways with the main one being profile reclassification where applicable.
What is profile reclassification & why does it matter to me? How do I know I am eligible?
When the Texas electricity market became deregulated back in 2002, before doing so, ERCOT and the PUCT in conjunction came up with Photovoltaic (PV) Profile classification type(s) that are used to help define the way consumers in Texas use energy. This information helps providers to determine your weather sensitivity risk levels. The overall accuracy of settlement will be improved. The unfair penalty assessed to oil and gas account holders that forces them to pay peak prices for off-peak usage will be eliminated. The profile will allow Pumpjack Power to reward greater off-peak usage patterns with appropriate pricing in a competitive marketplace. Contact us at [email protected], visit pumpjackpower.com or call 1.877.208.8675
TAKE THE NEXT STEP
CONNECT WITH PUMPJACK POWER.