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How DeregulationDrives Innovation How the Deregulated Energy Market  and Customer Choice Push Technology Further
More and more people are demanding more and more electrical power. State regulated markets lack agility to tackle rapid growth.  ,[object Object]
Power utilities & state regulators must negotiate to build new generators and transmission routes.
They must wrestle with the means of how to pass the expense on to consumers --(aka: state taxpayers)
Because regulators spend public money cautiously, innovations are often technologically out of date when deployed. ,[object Object]
When customers can choose between rival competitors in an industry, the most successful gives their customers what they want for the lowest price.
Investors can effectively order their generating companies to cut costs by investing in new technologies, adopting best practices, and improving energy efficiency. ,[object Object]
The Electricity Reliability Commission of Texas (ERCOT) estimates peak demand  for Texas electricity increased at an annual rate of 2.5% from 1990 to 2006.
Anticipated growth will require between 60,000 and 80,000 megawatts (MW) of new electricity generation capacity by 2030.,[object Object]
To supply demand, ERCOT has performed many improvements: ,[object Object]
Increased staff and resources, created new transmission pricing and interconnection policies.
Developed statewide planning expertise, and produced detailed annual reports identifying transmission constraints and needs throughout Texas.,[object Object]
ERCOT is the central clearinghouse for price and policy — transmission companies rely on one organization with one price.,[object Object]
Investing in the Grid In 2013 alone, an estimated 2800 circuit miles of additional 345 kv lines are planned. Between years 2010 through 2015, an estimated $8.8 billion of improvements are planned.
Investment in Power Generation: Between 1990 and 1997, the state regulated system only added 6 gigawatts (GW; 1 GW= 1,000 megawatts) of electrical generating capacity. From 1998 through 2008, 36 GW of electrical generating capacity was added. 6.4 GW (most of it green renewable energy) added in 2008 alone.
Most investment in new generation capacity was in energy efficient generating technologies: Low-polluting combined-cycle natural gas systems. Clean coal generation technologies now cut carbon emissions through Carbon Capture and Storage (CCS). Solar and wind power.
Texas leads the US with more operational wind turbines than Iowa and California combined. February 28, 2010: Texas wind turbines delivered a record 6,242 megawatts of power to Dallas, Austin and other population centers. 22% of all the electricity consumed in the Texas grid that day came from wind. ERCOT has now set the goal deploying 10,000 MW of renewable energy by 2025.
Smart Meters are the latest consumer innovation being deployed by TSPs and ERCOT. Provide both retail and transmission companies with consumer power usage for billing. Consumers can get an hourly breakdown of their usage history. Software companies are developing home systems for the consumer to monitor their electricity. Smart appliances will show consumers real-time usage and cost. Consumers can adjust their power usage to increase efficiency and save money.

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How Deregulation Drives Innovation

  • 1. How DeregulationDrives Innovation How the Deregulated Energy Market and Customer Choice Push Technology Further
  • 2.
  • 3. Power utilities & state regulators must negotiate to build new generators and transmission routes.
  • 4. They must wrestle with the means of how to pass the expense on to consumers --(aka: state taxpayers)
  • 5.
  • 6. When customers can choose between rival competitors in an industry, the most successful gives their customers what they want for the lowest price.
  • 7.
  • 8. The Electricity Reliability Commission of Texas (ERCOT) estimates peak demand for Texas electricity increased at an annual rate of 2.5% from 1990 to 2006.
  • 9.
  • 10.
  • 11. Increased staff and resources, created new transmission pricing and interconnection policies.
  • 12.
  • 13.
  • 14. Investing in the Grid In 2013 alone, an estimated 2800 circuit miles of additional 345 kv lines are planned. Between years 2010 through 2015, an estimated $8.8 billion of improvements are planned.
  • 15. Investment in Power Generation: Between 1990 and 1997, the state regulated system only added 6 gigawatts (GW; 1 GW= 1,000 megawatts) of electrical generating capacity. From 1998 through 2008, 36 GW of electrical generating capacity was added. 6.4 GW (most of it green renewable energy) added in 2008 alone.
  • 16. Most investment in new generation capacity was in energy efficient generating technologies: Low-polluting combined-cycle natural gas systems. Clean coal generation technologies now cut carbon emissions through Carbon Capture and Storage (CCS). Solar and wind power.
  • 17. Texas leads the US with more operational wind turbines than Iowa and California combined. February 28, 2010: Texas wind turbines delivered a record 6,242 megawatts of power to Dallas, Austin and other population centers. 22% of all the electricity consumed in the Texas grid that day came from wind. ERCOT has now set the goal deploying 10,000 MW of renewable energy by 2025.
  • 18. Smart Meters are the latest consumer innovation being deployed by TSPs and ERCOT. Provide both retail and transmission companies with consumer power usage for billing. Consumers can get an hourly breakdown of their usage history. Software companies are developing home systems for the consumer to monitor their electricity. Smart appliances will show consumers real-time usage and cost. Consumers can adjust their power usage to increase efficiency and save money.
  • 19. Market competition has pushed companies to tailor electricity to customers’ needs. Generation is separate from retail. Retailers and their customers can choose where they buy power. Power generating companies must produce power more efficiently than their competitors.
  • 20. Retail Energy Providers build their success by getting the best deal on the Texas Electricity. They shape plans to meet consumers' needs. They offer consumer incentives that reward both consumer loyalty and paying their bill on time. They pass on their savings to their customers.
  • 21. In a regulated market, consumer loyalty oron-time bill payment rewards don't happen. Why? The regulated power company is the only choice. ...or buying a case of candles.
  • 22. In a deregulated market, the consumer gets real choices. Consumers can choose the cheapest Texas electricity available or they can choose power made using 100% green, renewable technologies. They can choose a provider plan that follows monthly market prices or locked-in, fixed rates for up to five years. They can choose a provider that rewards customer loyalty and on-time bill paying.
  • 23. By competing to win, energy wholesalers and retailers will meet growing consumer demand for: Better Plans  Innovative Technologies  Lower Cost The quickest way consumers can save money is by shopping around for a better deal.Check out www.PowerToChoose.org