Starting Jan. 1, American Electric Power consumers can buy electricity from any supplier registered in Virginia.
What does electric deregulation mean to you?
The cost of generation -- the creation of electricity -- is the only part of the electric bill that will be competitive. The transmission costs, which remain regulated, will be factored into the generation price. That's because the competitive supplier has to pay to transmit its electricity from the generation source to the local distribution company. You will still have to pay your local utility the cost of delivering electricity to your home or business.
The legislation
establishing deregulation in Virginia contains safeguards to prevent "slamming,"
the unauthorized switching of customers that has caused so much controversy
in the telephone industry. The legislation also bans deceptive practices
in providing, distributing or marketing electric service. The State Corporation
Commission will handle customer complaints regarding a licensed competitive
supplier.
Some sources for more information:
Answers from the SCC about Virginia Energy Choice
Licensed suppliers for region:
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Licensed aggregators:
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Glossary of terms:
Affiliated
Competitive Service Provider: Any
competitive provider that controls, is controlled
by, or is under common control with a local
distribution company or its parent, that sells
electricity or natural gas. AEP Retail, for example,
is an affiliate of AEP Virginia. AEP Retail can sell electricity anywhere
in
Virginia that offers choice.
Aggregator: An entity, person or group that negotiates for a designated
group of customers for the purchase of electricity and related services.
Aggregators could negotiate a better price than each consumer could get
on an individual basis.
Competitive service provider: A seller of Competitive Energy
Services and other related services -- including metering and billing --
to
a retail customer. In Virginia, about 25 companies have registered with
the State Corporation Commission to compete for your business. That
includes sellers of electricity, gas and aggregators.
Deregulation: The replacement of rate regulation with market
determination of prices and services in a competitive environment.
Distribution: The delivery of electricity and/or natural gas from
a
substation or pipeline to your home or business. Local distribution
companies maintain these lines and equipment and deliver the energy to
consumers.
Energy marketer: A company or individual who purchases electricity
or natural gas in bulk and resells them to a retail customer, including
residents, businesses and industrial users.
Generation: The stage in which energy is produced. Electric generation
occurs at a power plant fueled by various sources: coal, natural gas,
nuclear. The source for natural gas is at the well head.
Price to compare: The rate or price per kilowatt-hour used for
comparing one energy supplier against another in a retail environment.
Related Competitive Energy Services: Services related to the
competitive supply of electricity and/or natural gas including metering,
meter data management and billing.
Reliability: The degree to which energy is made available to customers
in sufficient quantity and quality to be dependable and safe.
Restructuring: The transition from a regulated industry to a competitive
marketplace in which companies will compete to provide energy
products.
Stranded costs: The difference between the market price for utility
services and the regulated rate for services. For example, utility
investments, such as power plants, lines and equipment, that cannot be
recovered by selling energy services at market prices.
Transmission: Movement of electricity or natural gas from the power
plant or well head to a distribution substation.
Unbundling: The separation of energy services into parts -- such
as
generation, transmission and distribution.
Some articles from the Roanoke Times relating to deregulation:
Nov. 3, 2001
Electric
utilities seeking alignment
Nov. 9, 2001
Rush
to switch providers unlikely after deregulationNov.
13, 2001
Electric
deregulation could spark mergers
Nov. 20, 2001
Energy
changes bring debate
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