In Texas

Texas is the world's 11th largest electricity market and the only state with true wholesale and retail competition. Its population is expected to grow 60% between 2000 and 2030. To ensure that Texas would have the affordable power it will need to support this growing population, the state deregulated and restructured its energy markets. This has spurred a massive investment in generation with more than $15 billion in new capacity.

Deregulation of the Texas wholesale market began in 1995 when independent power generators were permitted to gain access to the statewide power grid (the "Grid"). In 1999, Texas established ERCOT as the independent operator of the Grid, and began linking together generators, energy delivery companies and retail electric providers ("REPs") like Ambit in order to promote competition. Formerly integrated utilities were split into three businesses: unregulated wholesale power generators, regulated transmission and distribution service providers ("TDSPs", "wires company" or "energy delivery company"), and unregulated REPs.

The primary responsibility of the energy delivery company is to deliver electricity over its power lines to homes and businesses on behalf of the REPs. These delivery companies are also responsible for building new power lines, restoring power following outages, reading electric meters, and connecting and disconnecting service as ordered by the REPs. Consumers call these delivery companies directly for issues relating to meters, power quality, new construction, meter installation, tree trimming and outdoor lighting.

Retail competition finally began on January 1, 2002 when customers of independent operating utilities in the ERCOT regions of Texas were allowed to choose a retail electric provider. Residential and many commercial customers were transferred to the incumbent REPs to be served on a month-to-month rate, known as the "price-to-beat," until such time as these customers choose to be served by an independent REP. Today, although the "price-to-beat" is no longer part of the deregulated environment, Ambit Energy continues to aggressively undercut incumbents' rates and beats other competitive REPs all across Texas.

Through June 2006, almost 30% of consumers across Texas had chosen a competitive retail energy provider to replace their incumbent provider.

In New York

In 1996 the New York State Public Service Commission (PSC) began to deregulate the state's electric industry. Today the New York electricity industry is open to competition, which allows customers to choose who supplies their electricity.

New energy suppliers in New York are known as energy service companies, or "ESCOs." In New York's deregulated energy market, local utilities are required to offer electricity users a choice among ESCOs competing for retail electricity customers. The local utility will continue to deliver electricity to homes and businesses and will continue to be regulated by the PSC.

In New York's competitive energy market, electricity prices should be lower than they would be under government regulation. So customers can save money by choosing an ESCO that provides at a lower cost.

Supply and Delivery

In New York, a customer's energy bill is divided into two parts—supply and delivery. The utility company charges for delivering electricity to the residence. Delivery charges typically encompass 50% of the total charges on an electricity bill. As a state-approved ESCO, Ambit Energy charges for the supply of electricity—in other words, for the amount of electricity actually used.

When a customer chooses Ambit Energy for residential electricity, both the utility delivery charges and the ESCO supply charges will be included on the same bill.

Meanwhile, the PSC ensures safe and reliable delivery through continued regulation of energy utilities.

The Ambit Energy Difference

As it is in most states, New York's energy utilities were once operated as regulated monopolies, providing the transmission wires (delivery) and the electricity you use (supply). Today in New York, consumers can choose not to pay monopoly providers for supplying electricity. Ambit Energy is now an Electric Service Company (ESCO) with approval by the New York Public Service Commission to sell electric service in the State of New York. Ambit buys electricity in bulk from energy power plants so we can pass the savings on to New York consumers with a competitive price on electricity supply.

In Texas, where Ambit was founded, we have already helped tens of thousands of customers save money on their electric bills. That's the "Ambit Difference."