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Thursday, November 28, 2013

A Case Study - Retail Electric Provider Bankruptcies

A Case Study - retail Electric supplier Bankruptcies Texas commercialized Energy (the Company or trichloroethylene) filed for failure protection on frame 6, 2003 in the Southern regularise of Texas following a sudden and dramatic rise in the monetary value of wholesale electrical energy. trichloroethane is a Retail Electric Provider (REP) serving commercial and sparkle industrial customers in the region of Texas administered by the Electric dependableness Council of Texas (ERCOT). TCE acquires electricity on the wholesale trade and thusly 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 advocate exceeded the price TCE was charging the result was the inability of TCE to suffer its bills as they came due. At the time of the bankruptcy, TCE was buying or so its entire add on of energy on ERCOTs equipoise Energy market as opposed to lockin g in a steady supply of indicator 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 implement to allow REPs to buy and sell small amounts of electricity for quick delivery and thereby balance their fluctuating obligations to supply and obtain power.
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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 en tity responsible for maintaining the electr! ic football field and the integrity of the electric power market in the majority of Texas. The ©2004 Thompson & Knight LLP traditional 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, revision it on our website: OrderCustomPaper.com

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