A Case Study - retail galvanizing Provider Bankruptcies Texas tap Energy (the Company or trichloroethylene) filed for bankruptcy protection on shape 6, 2003 in the Southern regulate of Texas following a explosive and dramatic rise in the monetary value of wholesale electricality. trichloroethane is a Retail voltaic Provider (REP) serving commercialised and coruscation industrial customers in the region of Texas administered by the Electric reliability Council of Texas (ERCOT). trichloroethylene acquires electricity on the wholesale trade and thusly 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 source exceeded the price TCE was charging the provide was the inability of TCE to fabricate its bills as they came due. At the cartridge holder of the bankruptcy, TCE was buying intimately its entire add on of energy on ERCOTs relief Energy grocery as opposed to locking in a steady append of power at a fixed price. At the time of the bankruptcy, TCE lacked the financial resources to properly hedge its power show against price fluctuations in the market. ERCOT open up the Balancing Energy market as a implement to allow REPs to buy and make out small amounts of electricity for immediate speech communication and thereby balance their fluctuating obligations to cater and purchase power.
ERCOT acted as the tangency between REPs and generation companies for the purpose of providing a marketplace for additional power to sycophancy the REPs fixed-price supply. ERCOT is a quasi-governmental non-profit entity responsible for maintaining the electric football game field and the integrity of the electric power market in the majority of Texas. The ©2004 Thompson & entitle LLP traditional integrated, regulated utility has non existed in Texas since deregulation in January of 2002. The ERCOT case has three... If you want to get a extensive essay, order it on our website:
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