the restructuring of power industry & how it affects me

ALL Global Solutions1

The Restructuring of Power The Restructuring of Power Industry & How It Affects MeIndustry & How It Affects Me

Yunqiang Lu, Ph.D.Yunqiang Lu, Ph.D.

February 2005February 2005


电力供应市场化电力供应市场化 vs vs 家庭用电账单家庭用电账单电力知识普及讲座电力知识普及讲座 -- -- 主讲人：吕运强博士主讲人：吕运强博士

电力基本知识，美国电力工业及市场化概况

德克萨斯州电力的市场化

电力市场化对普通居民用户的影响及应对措施


How Does Power System Work?How Does Power System Work?

The primary energy:

coal, nuclear, hydro,

natural gas, wind, solar,

etc. is converted to

electricity (secondary

energy).


Regional Reliability CouncilsRegional Reliability Councils

Western Electricity Coordinating Council

Midwest Reliability Organization

Southwest Power Pool, Inc. Electric Reliability Council

of Texas, Inc. Mid-America

Interconnected Network, Inc.

Northeast Power Coordinating Council

East Central Area Reliability Coordination Agreement

Mid-Atlantic Area Council Southeastern Electric

Reliability Council Florida Reliability

Coordinating Council


What is power system What is power system Restructuring?Restructuring?

Integrated

Monopoly

Power System:

generation,

Transmission,

distribution,

and related

services

Generation

Company

Restructuring Transmission

/Distribution Company

Retail Electric

Provider


Power Industry Restructuring in U.S.Power Industry Restructuring in U.S.

PURPA 1978 –Allow unregulated generators

EPACT 1992 –Wholesale competition and open transmission access

FERC Orders 888, 889 –April 1996 –Functional unbundling of transmission –Voluntary formation of ISOs (1998)

FERC Order 2000 –December 1999 –RTO Compliance Filings on October 15, 2000 –RTOs Operational December 15, 2001


ISO and RTOISO and RTO


Why Restructuring and Deregulation?

Restructuring and deregulation introduce the competition in power system industry

Allow customers to have more control over their purchase of electric service

Lower rates Speed the development of new products and services Create new jobs Stimulate economic development Help our environment


ERCOTERCOT

Electric Reliability Council of Texas; Officially founded in 1970; Independent, not-for-profit organization; Utility Commission of Texas (PUCT) is ERCOT's

principal regulatory authority; About 85% of the state's electrical load ; 20,000,000 people and 200,000 square miles ; More than 76,000 megawatts of generation, 37,0

00-mile power grid.


85 percent of the electrical power in Texas 75 percent of the land area in Texas


Market, Participants

Public Utility

Commission of

Texas (PUCT)

Technical Advisory

Committee (TAC),

four standing

subcommittees

ERCOT, Board of

Directors, executive

Coordinating

Supervisory

SupportingRegulating

Texas Power IndustryTexas Power Industry


Restructuring in TexasRestructuring in Texas

1995, Deregulated Wholesale Market 1999, Texas Electric Competition Act (SB7) September 1, 1999 through January 1, 2002 - Frozen Rates January 10, 2000 - Separation of Business Activities April 1, 2000 - Transmission and Distribution Tariffs December 31, 2000 - Market Power Mitigation, <=20% in a r

egion June 1, 2001 - Retail Pilot Programs November 1, 2001 - Capacity Auction January 1, 2002 - Customer Choice Begins (Price to Beat,

6% less than the frozen rate) January 1, 2004 - Meter management and meter reading


Key ProvisionsKey Provisions

Investor-owned electrical utilities services will be unbundled

Electric wires companies will continue to be regulated

Power Generation Company's electrical capacity ownership will be limited

New competitive Retail Electric Providers must establish a "price to beat“

No-opt provision for municipally-owned utilities or cooperatives


New Market ParticipantsNew Market Participants

Resources Load Serving Entities (LSEs) Transmission and/or Distribution Service

Providers (TDSPs) Qualified Scheduling Entities (QSEs) Non Opt-In Entities (NOIEs)


How Does It Affect Me?How Does It Affect Me?

Transmission and distribution company is the actual delivery of electricity across poles and wires to your home

Retail Electric Providers sell electricity to you and provide functions such as customer service and billing

Use an aggregator for the power purchase Choose a new retail provider by Jan 1, 2002 Changing provider


Retail Electric ProviderRetail Electric Provider

Residential Retail Electric Providers (20)

Business (Non-Residential) Retail Electric Providers (44)

Aggregators (41/68)


Choosing ProviderChoosing Provider

Find electric providers serving your area Or, use an aggregators Compare each Retail Electric Provider’s rates and

services by checking Electricity Facts Label– Electric rates– Contract terms– Penalty for early cancellation – Sources of power generation

Choose the electric provider that meets your particular needs

Establishing a new service


Other Competitive ServicesOther Competitive Services

Security Lighting Energy Audits Energy Efficient Products Energy Efficiency Programs Metering Customer Usage Information


Your Rights as a CustomerYour Rights as a Customer

Non-discrimination, slamming and cramming, privacy information, etc

Choose a new Retail Electric Provider File a complaint State-sponsored "No-Call Lists" -- Statewide Do Not

Call List & Electric No-Call List Programs for Low-Income Customers

– LITE-UP Texas program– Qualification of Low-Income– Work with REP on an individual basis(Payment Assistance Funds)

Non-Payment & Disconnection


Bill ContentBill Content

Meter:– ESI ID– Meter Number– Mult (Multiplier)

Current Usage– Current/Previous Meter Reading, Service Period– kWh used with Multiplier

Rate– Base Charge– kWh charge– Fuel Cost Adjustment Charge

Historical Usage Billing Address


BillingBilling

You will receive a monthly bill via U.S. Mail. You have the choice of receiving your bill

electronically, if both you and your Retail Electric Provider agree.

Your bill will include a toll-free phone number that you can call during business hours with questions or complaints.

Your bill will also include a toll-free number you can call 24 hours a day, seven days a week, to report power outages and concerns about safety of the electric power system.


Energy Savings at HomeEnergy Savings at Home

A/C, Heating, Ventilation (60~70%)– heating, ventilation and air conditioning system, return air and

ductwork systems– Summer, each degree below 78°F, +9% cooling costs – Winter, each degree above 70°F , +3-5% heating costs

Home Insulation– Attic insulation, Radiant barriers, Weatherization, Windows

Appliances and lighting– Thermostats, Refrigerators & freezers, Water heaters, Ceiling

fans, Lighting, Dishwashers, Washing machines & dryers, Cooking appliances

Pools


Energy Savings TipsEnergy Savings Tips

Good home insulation Proper size/type of equipments/appliances High efficient equipments/appliances Keep good conditions of the appliances Properly use AC/Heating system and thermostat Smartly use your ceiling fans Replace inefficient lights Properly locate the appliances


Actions Actions & Info& Info to Reduce the Bill to Reduce the Bill

Choose a proper REP Energy efficient appliances Energy saving home More Information for energy efficiency: Department

of Energy http://www.doe.gov, Texas Department of Housing & Community Affairs http://www.tdhca.state.tx.us, or any other retail electric providers for energy saving information


Any Questions?Any Questions?


Happy Chinese New Year!Happy Chinese New Year!

Thank You!Thank You!

the restructuring of power industry & how it affects me

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