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.
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
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)
A Full List of Energy Services:
With an energy audit, we establish a baseline and then recommend reducing these costs through our outsourcing procurement program. Our fiscal management consultants are ready to help you in any of the following areas:
Energy Management Services
Energy Procurement
Economic Feasibility
Energy Sustainability
Support Services
Energy Risk Management
On-Site Electricity Generation
Renewable Energy Consulting
Demand Response
Services for Energy Suppliers
Energy Audits and Studies
Sourcing Financing
Energy Consumption Reduction
Renewable Energy Purchasing
Utility Infrastructure Management
Energy Risk Management
Energy Strategy Development
Market Analysis & Monitoring
Ongoing Hedge Management
Supplier Qualification & Proposals
Supplier Comparison & Analysis
Contract Negotiations & Execution
On-Site Electricity Generation
ImplementationCommercialization
Sustainable Energy Strategy Development
Renewable Energy Strategy Development
Evaluating a Renewable Energy Purchase
Renewable Energy Procurement
Negotiation of Power Purchase Agreements
Site & Volume Management
Invoice Validation
Budgeting & Forecasting
Information & Payment Services
