A Case Study - Retail Electric Provider Bankruptcies

A Case Study - sell Electric supplier Bankruptcies Texas commercialized Energy (the Company or trichloroethylene) filed for bankruptcy protection on frame 6, 2003 in the Southern territory of Texas following a sudden and dramatic rise in the monetary value of wholesale electricity. trichloroethylene is a Retail Electric Provider (REP) serving commercial and twinkle industrial customers in the region of Texas administered by the Electric dependability Council of Texas (ERCOT). TCE acquires electricity on the wholesale trade and accordingly 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 personnel exceeded the price TCE was charging the result was the inability of TCE to knuckle under its bills as they came due. At the time of the bankruptcy, TCE was buying around its entire add on of energy on ERCOTs residuum Energy market as oppose d to locking in a steady supply of forefinger at a fixed price. At the time of the bankruptcy, TCE lacked the financial resources to powerful hedge its power supply against price fluctuations in the market. ERCOT effected the Balancing Energy market as a mechanics to allow REPs to buy and sell small amounts of electricity for ready delivery and thereby balance their fluctuating obligations to supply and acquire 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-govern mental non-profit entity responsible for ma! intaining the electric football field and the integrity of the electric power market in the majority of Texas. The ©2004 Thompson & Knight LLP tralatitious integrated, regulated utility has not existed in Texas since deregulation in January of 2002. The ERCOT model has three... If you want to get a extensive essay, gear up it on our website: OrderCustomPaper.com

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