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 dominion 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 scintillation industrial customers in the region of Texas administered by the Electric dependability Council of Texas (ERCOT). TCE acquires electricity on the wholesale trade and indeed 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 force exceeded the price TCE was charging the result was the inability of TCE to abide its bills as they came due. At the time of the bankruptcy, TCE was buying near its entire add on of energy on ERCOTs isotropy Energy market as opposed to locking in a steady supply of actor at a fixed price. At the time of the bankruptcy, TCE lacked the financial resources to decent hedge its power supply against price fluctuations in the market. ERCOT conventional the Balancing Energy market as a apparatus to allow REPs to buy and sell small amounts of electricity for prompt delivery and thereby balance their fluctuating obligations to supply and purchase 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 accountable for maintaining the ele! ctric football field and the integrity of the electric power market in the majority of Texas. The ©2004 Thompson & Knight LLP conventional 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, target it on our website: OrderCustomPaper.com

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