About Energy Deregulation
Under energy 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.Â
Energy Deregulation: Map
Benefits to the consumer:
Price protection (with a wider variety of pricing options)
Competitive prices may now be available to the consumer
More product plans are available for customers
Prices may be stabilized for the consumer
A larger selection of products that support customer needs
Freedom of choice
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PJM Determines Capacity
Regional Transmission Organizations (RTO) are responsible for maintaining adequate capacity between utility companies
The RTO serving the Northeastern United States is PJM Interconnection, L.L.C. (servicing all or parts of 13 states plus the District of Columbia)
PJM uses a Reliability Price Model (RPM) – Determines Capacity
The auction process gains commitments from resources
Sets price for capacity
Sends price signal to potential developers of generation, demand response, and/or transmission.
Capacity represents the need for adequate generating resources
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
Capacity Charges in the Midwest
​Table 1: Capacity Charges in Ohio Base Residual Auction (BRA) / BRA & Capacity Performance (CP) Blend ($/MW-day)
OHIO – Base Residual Auction Results – ’21-’22
2X Increase to Capacity Cost in PJM
The results for the 2021/2022 Base Residual Auction (BRA)-effectively determining what you will pay in capacity costs from June 1, 2021, through May 31, 2022-were announced on May 23, 2018.
- The 2021/2022 BRA cleared at $141 per-Megawatt-Day (MW-Day) for most of PJM (the Regional Transmission Organization (RTO) that manages the movement of wholesale electricity for much of the Northeastern US.)
- This price includes American Electric Power-Ohio (AEP)which is significantly higher than the 2020/2021 clearing price of $76.53 per MW-Day.
- FirstEnergy Ohio (FE) cleared at $158 per MW-Day. This is about $17 per MW-Day higher than the rest of the RTO.
Table 2: Current Capacity Prices for the 2016/2017 through 2021/2022 Delivery Years for Ohio customers in FE, AEP, Dayton Power & Light (DP&L), and Duke territories.
Capacity Charges in the Mid-Atlantic
MARYLAND – Base Residual Auction Results – ’21-’22
2X Increase to Capacity Cost in PJM
The results for the 2021/2022 Base Residual Auction (BRA)-effectively determining what you will pay in capacity costs from June 1, 2021, through May 31, 2022-were announced on May 23, 2018.
- The 2021/2022 BRA cleared at $141 per-Megawatt-Day (MW-Day) for most of PJM (the Regional Transmission Organization (RTO) that manages the movement of wholesale electricity for much of the Northeastern US.)
- Baltimore Gas & Electric (BG&E) cleared at $162 per MW-Day. This is about $21 per MW-Day higher than the rest of the RTO.
Table 1: Capacity Charges in Maryland Base Residual Auction (BRA) / BRA & Capacity Performance (CP) Blend ($/MW-day)
Table 2: Current Capacity Prices for the 2016/2017 through 2021/2022 Delivery Years for Maryland customers in Baltimore Gas & Electric (BG&E), Delmarva Power and Light Company, Potomac Edison and Potomac Electric Power Company (PEPCO)
TPI Services:
Energy Commodity Solutions
·        Managed Contract Negotiation
·        Cost/Risk Management
·        Utility Bill Audits
·        Rebates and Rider Exemptions
·        Capacity Tag Management
·        Demand Response Solutions
Renewable Energy
·        Solar, Wind and Hydro Options
·        Green E-RECs
·        VPPA Development
Sustainability Planning
·        Strategic Planning and Advising
·        Scope 1 and 2 Emissions Strategies
·        Renewable and Low-Carbon Solutions
·        ASHRAE Level Assessments
Building Management Solutions
·        Energy Monitoring
·        Building Envelope
·        HVAC Systems
·        Ventilation Systems
·        Water Systems
Electrical Solutions
·        LED Lighting
·        Power Quality
·        Power Surge Control
·        Meter Aggregation
·        Transformers/Substations
·        EV Charging
Project Funding Support
·        $0 Down and Pay-as-you-go Financing Options
·        Equipment Leases/Consignment
·        On-Bill Funding
·        Grant Writing
·        Return on Investment Analysis
·        Rebate Processing
Our Client Success Stories:
TPI EFFICIENCY + AN INTERNATIONAL AIRPORT CLIENT
A fast-growing international airport was looking to upgrade existing, dated fixtures to LED lighting without any capital investment.
TPI EFFICIENCY + A LARGE CHURCH COMPLEX
A church, built in 1885, was looking to update its lighting – both interior and exterior – to reduce its energy costs and to keep its outdoor spaces well illuminated.
TPI EFFICIENCY + SPORTS COMPLEX WITH SIX LOCATIONS
Our client was in the market to reduce operating costs for six indoor sports complex locations.
TPI EFFICIENCY + A LARGE MANUFACTURING COMPANY
A large manufacturer in the building industry, is dedicated to converting the building products industry from its uninspiring past to a dynamic and sustainable future.
TPI EFFICIENCY + COMMERCIAL REAL ESTATE DEVELOPMENT ORGANIZATION
For over 30 years, this commercial real estate development corporation has been responsible for successfully developing, leasing, and managing over $400 million of office buildings throughout the mid-Atlantic area.
TPI EFFICIENCY + NATIONAL HISTORY MUSEUM
Our client is a museum exhibiting historic transportation equipment, located on the East Coast.
