Deregulation Booklet 032009

Your window of opportunity.

4EnergyDeregulation

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

Deregulation Booklet 032009

Business

Transcript of Deregulation Booklet 032009