Electricity Retail Wheeling Handbook Second Edition by John M. Studebaker
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Electricity Retail Wheeling Handbook Second Edition by John M. Studebaker

I wish to express my thanks to the many individuals whose information, insight and comments have assisted in making this publication possible. Every effort has been made to provide dependable and accurate information. However, changes occur almost on daily basis due to the very active environment that encompasses electricity retail wheeling. This publication will address the issues they currently exist well provide insight for the future so that the electricity purchaser can be assured that their electricity costs remain competitive regardless of what the future brings.

The purpose of this publication, from an electricity purchaser’s viewpoint, is to sort out all of the potential pitfalls and opportunities that both currently well in the future may reduce or increase electricity costs. accurately assess electricity costs, purchaser must have at least minimal understanding of how electricity flows from where it originates to where the purchaser is located, and how costs are accumulated in the process.

There are many publications that currently address specific areas of retail wheeling of electricity in one manner or another. There are also many seminars that address various aspects of retail wheeling of electricity. So why add one more publication to what appears to be an already cluttered field? Most publications well seminars address specific areas of the retail wheeling process but may not tie all of the loose ends together. Also it seems that assumption exists that everyone knows all of the basics, and therefore this allows publications and seminars to concentrate on only one or two specific areas of information. This publication is intended to be of value to an electricity purchaser that needs to know the best and least costly method of obtaining electricity at their facility based upon their usage characteristics for now well in the future.

It will also address how to determine the best source of electricity pre- or post-deregulation that insures reliability well cost competitiveness.  As with any undertaking, logical procedure must be established. In this publication, the discussion of retail wheeling of electricity is the predominate theme. However, before we discuss and analyze the retail wheeling process, we must understand the basics of electricity it relates to generation, transmission and delivery to the retail customer. To accomplish this end, basic overview of regulation processes and electricity tariff schedule provisions is included in the following section.

Please read this section with great care it provides the foundation upon which will be built the understanding of retail wheeling of electricity. Remember that successful retail wheeling strategy will require an understanding how the electricity process functions. This publication is divided into four basic sections: Section 1, Understanding Electric Utility Basics (Chapters 1-3); Section 2, Electricity Retail Wheeling-The Processes Involved (Chapters 4-6); Section 3, Electricity Retail Wheeling in Action (Chapter 7); and Section Appendices A-E, important background data to assist in reducing electric utility costs. Many changes have occurred in the electric utility industry since the last edition (1995) of this publication.

Deregulation of the electricity industry has progressed on rather ununified state-by-state basis in the last 5 years. Since deregulation of electricity at this time is entirely state-by-state procedure, there sometimes seems to be no rationale for particular state‘s position on deregulation. If the current pace of deregulation is maintained, it could conceivably be many years before some states will ever allow their electricity users the opportunity of choice in electricity commodity providers.

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