PumpJack Power can save you time and money.
A Proper ERCOT (PV) Profile Assignment will lower your operating expenses.
Allocate energy consumption evenly
Proper assignment means energy will be allocated to you evenly across a 24-hour cycle instead of allocating disproportionately the amount of energy to the right time of day.
Eliminate weather sensitivity as a factor
Eliminating weather sensitivity lowers the cost of delivered energy at settlement.
What is ERCOT?
How does ERCOT work?
Deregulated v. Regulated Energy Markets
Electricity markets typically either allow customer choice — or they do not. The type of market available to you is generally dependent on where you live and/or operate your business.
Regulated electric markets
Regulated electric markets are home to vertically-integrated utilities that own or control the power plants that generate electricity, as well as all of the transmission and distribution equipment—such as the poles, wires, and transformers—that is used to distribute electricity to homes and businesses. In other words, you only have one option for your electric utility, who owns both the energy generated and the means to distribute it, and the rates your utility charges you are approved and regulated.
Deregulated electric markets
Deregulated electric market utilities are required to divest their ownership in generation and transmission. This means they are only responsible for:
- Distribution, operation, and maintenance from your interconnection to the power grid at your electric meter
- Billing you, the ratepayer, for the delivery of consumed energy to that meter
What this ultimately means is that in a deregulated market, you have a choice of who to buy your energy supply from and how. You pay these certified Retail Electric Providers (REPs) what's often referred to as the "supply" portion of an electric bill.
Option 1 vs Option 2 Providers
The biggest difference when purchasing comes from structure. The overall structure of a provider ultimately affects the following three key components: Supply Price, Contract Flexibility, and Focus.
Option 1 Providers
The Supply Price is affected in that any offered rate must take into consideration that provider’s overall cost to operate. For an Option 1 supplier model these costs are significantly higher due to size and overall load volatility of their customers currently being served.
Contract Flexibility within the Option 1 supplier model is extremely limited and contract customization is nearly non-existent. This is because contracts are often skewed to favor the provider from the risks they face serving the masses. Option 2 providers, however, are licensed to serve specific customers; therefore, contract customization and flexibility are an integral part of the setup and negotiation process. This relationship is intended to be reciprocal in nature.
Option 2 Providers
Because of the nature of the Option 2 certification, client focus is key. This chosen supplier model is the only one that affords the supplier the tools necessary to tailor their operations in such a way to benefit the types of customers they wish to serve. As a result, Pumpjack Power can provide significantly lower supply prices, customized contracts, and individualized focus.
Broker/Aggregator vs Buying from Pumpjack Power
When compared to purchasing direct from an Option 1 provider, broker/aggregator services undeniably provide cost saving benefits. This is because unlike shopping from a single source, brokers/aggregators afford their clients the ability to attain a broader market view of supplier offers when considering price, contract, and overall services. However, when comparing to Pumpjack Power the reality is that many brokerage firms are limited by those very same partnerships and the constraints that come along with them.
When Oil & Gas consumers use a broker/aggregator they often:
- Pay higher inflated prices
- Constrained to the bids solicited by the providers the broker/aggregator is partnered with
- Forgo the capabilities of taking proactive action by making structural changes to benefit an overall energy profile
- Have less contractual flexibility
When you buy through Pumpjack Power:
- Partner with the only supplier specifically designed for the Oil & Gas Industry
- Pumpjack Power is the only supplier addressing unnecessary risks and bringing you power at the best price possible
- Better service flexibility and broader risk mitigation
- Complete contractual control
Electricity Deregulation FAQs
- What is deregulation and how does it benefit consumers?
- In Texas, there used to be only one choice for electricity based on where you live. If you wanted electricity, you had to buy from the local utility. Everything changed in 2002, when a new state law broke apart the old monopolies and separated the delivery of electricity from the electricity itself. Now, in much of the state, one company reads the meters and maintains the poles and wires that deliver the electricity and many companies now compete to sell the electricity that runs over the poles and wires. As a result, consumers benefit from competitive rates, more product options and greater service levels.
- How do I know if I am in a deregulated part of the state and eligible to choose a Retail Electric
- Contact us at email@example.com, visit www.pumpjackpower.com or call 1.877.208.8675
- What happens if I have an emergency or power outage, since the market is deregulated?
- Contacting your local transmission and distribution utility (TDU), also known as a transmission and distribution service provider (TDU) company, is the fastest way to get a response to an emergency or power outage situation. Utility contact numbers are listed within the ‘Report an Outage’ tab for your reference.
- What is the difference between an Option 1 & Option 2 Retail Electric Provider?
- An Option 1 Provider offers service defined by a geographic area and the focus of that provider is to grow their portfolio as much as possible by supplying power to as many residential, retail and industrial customers as possible. Most provider(s) currently serving load to the Electric Market in Texas are Option 1. An Option 2 Provider offer(s) service to specifically identified customers, each of whom contracts for one megawatt or more of capacity.
- How can Pumpjack Power offer lower rates than many of its competitors?
- Simply put, lower risk. Because we are focused on serving load to those in the Oil & Gas industry specifically, who’s usage and demand patterns are non-weather sensitive differing greatly from other weather sensitive Texas consumers, like that of residential, retail, and industrial consumers, we are uniquely positioned to offer a partnership reciprocal in nature that cannot be matched. This is accomplished in many ways with the main one being profile reclassification where applicable.
- What is profile reclassification & why does it matter to me? How do I know I am eligible?
- When the Texas electricity market became deregulated back in 2002, before doing so, ERCOT and the PUCT in conjunction came up with Photovoltaic (PV) Profile classification type(s) that are used to help define the way consumers in Texas use energy. This information helps providers to determine your weather sensitivity risk levels. The overall accuracy of settlement will be improved. The unfair penalty assessed to oil and gas account holders that forces them to pay peak prices for off-peak usage will be eliminated. The profile will allow Pumpjack Power to reward greater off-peak usage patterns with appropriate pricing in a competitive marketplace. Contact us at firstname.lastname@example.org, visit www.pumpjackpower.com or call 1.877.208.8675