A Case Study - Retail Electric Provider Bankruptcies

A Case Study - retail Electric provider Bankruptcies Texas commercialized Energy (the Company or trichloroethylene) filed for loser protection on frame 6, 2003 in the Southern regulate of Texas following a sudden and dramatic rise in the monetary value of wholesale electrical energy. trichloroethylene is a Retail Electric Provider (REP) serving commercial and scintillation industrial customers in the region of Texas administered by the Electric reliableness Council of Texas (ERCOT). TCE acquires electricity on the wholesale trade and hence re shops it on a retail basis to its customers. TCE enters into 12, 24 or 36 month contracts with its customers to planning electricity at a fixed price. When the wholesale price of origin exceeded the price TCE was charging the result was the inability of TCE to right its bills as they came due. At the time of the bankruptcy, TCE was buying approximately its entire add on of energy on ERCOTs remnant Energy market as opposed to lo cking in a steady supply of authority at a fixed price. At the time of the bankruptcy, TCE lacked the financial resources to flop hedge its power supply against price fluctuations in the market. ERCOT open the Balancing Energy market as a tool to allow REPs to buy and sell small amounts of electricity for fast delivery and thereby balance their fluctuating obligations to supply and bribe power. ERCOT acted as the middleman between REPs and generation companies for the purpose of providing a marketplace for additional power to compliment the REPs fixed-price supply. ERCOT is a quasi-governmental non-profit entity liable for maintaining the electric football field and the integrity of the electric power market in the majority of Texas. The ©2004 Thompson & Knight LLP tralatitious integrated, regulated utility has not existed in Texas since deregulation in January of 2002. The ERCOT model has three... If you want to get a extensive essay, ordinance it on our website: OrderCustomPaper.com

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