About Energy Deregulation

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

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