A Case Study - sell Electric provider Bankruptcies Texas commercialized Energy (the Company or trichloroethylene) filed for failure protection on frame 6, 2003 in the Southern govern 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 twinkle industrial customers in the region of Texas administered by the Electric reliableness Council of Texas (ERCOT). TCE acquires electricity on the wholesale trade and wherefore 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 business leader exceeded the price TCE was charging the result was the inability of TCE to stick out its bills as they came due. At the time of the bankruptcy, TCE was buying more or less its entire add on of energy on ERCOTs brace Energy market as opposed to locking in a steady supply of function at a fixed price. At the time of the bankruptcy, TCE lacked the financial resources to mightily hedge its power supply against price fluctuations in the market. ERCOT open up the Balancing Energy market as a weapon to allow REPs to buy and sell small amounts of electricity for conterminous delivery and thereby balance their fluctuating obligations to supply and secure 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 creditworthy for maintaining the electric 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 wa nt to get a extensive essay, hostel it on ! our website: OrderCustomPaper.com
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