Capital Planning & Budget
purchasing electrical energy
All of you have heard of restructuring or deregulation in the electric industry. Some of you may have already been approached with "are you tired of high electric bills? I can guarantee...".
I doubt that you would receive such a call at home in the immediate future, however, institutional, industrial or commercial facilities will be on the front line.A look at this electric industry in its simplest form and the three distinct components it is made up of:
- Generation of electricity - manufactures electricity
- Transportation of electricity - electric wires we see around us every day used to move electricity from where it is generated to where it is used.
- Customer service - obtaining electric power from those who generate it for customers, metering, and billing functions, and provide services for customers.
Wheeling is utility jargon for moving power across a transmission or distribution system.
Electric utilities already buy and sell their product among themselves at the wholesale level. This practice is called "wheeling". Wholesale wheeling is when a utility allows other utilities to use its lines as needed to deliver power. There is a charge for this service.
Retail wheeling is when a utility allows other utilities, large customers (institutions or an industry) and perhaps ultimately residential customers, to use its lines as needed to deliver power. There is a charge for this service. In other words, customers would be able to acquire power from an outside supplier and have the local utility wheel it to them.
There are some new "providers" eager to supply energy and services related to the electric industry:
"Aggregators" are organizations that put customers together into a single buying group.
"Brokers" are a middleman who brings two parties together to facilitate an energy transaction. They are paid through a commission on each energy transaction.
"Power Marketers" take title to energy and resell it to the end user. This person represents the generator-supplier while the broker acts as a middleman.
Companies you may have heard of:
Glenco (Great Lakes Energy Corp) 608/288-2020 is owned by Madison Gas & Electric and offers natural gas and energy-related services.
Heartland Energy Services 800/785-2440 is owned by Wisconsin Power and Light Holdings, Inc. and offers the means to deliver cost-effective energy supplies and services.
Both of these companies, as well as others, offer services such as:
- Electric wheeling information
- Swing / peaking services
- Rate analysis
- 24 hour availability
- Natural gas supply
- Energy planning
- Alternate fuel supplier
The 1992 Federal Energy Policy Act endorsed the goal of competition in the wholesale electricity market.
Stay informed...power marketing is a common topic in the Energy Yellow Pages on the web. Check locations: http://www.gridwise.com/ (or) http://www.energyonline.com/