Here at OnPAC Energy, we are taking a moment to reflect as we mark our tenth anniversary as a Retail Electric Provider in Texas.
It has been an interesting ten years, to say the least. In many ways, we find ourselves in a much different market today.
We operated through the credit crisis of 2008 that eventually shut down many other REPs in Texas. We adapted to the additional financial and regulatory requirements imposed by the PUC in response to that crisis. The Texas electric market went through a fundamental transformation to a Nodal settlement structure. Maximum lawful wholesale prices have been increased from $1,000 per MWH in 2002, to $7,000 this year, and to $9,000 per MWH next year.
Smart meters have been installed throughout ERCOT, allowing market participants to act upon usage data determined every fifteen minutes. Renewable energy sources such as wind generation and solar power now account for close to 10,000 MW peak generation in 2013 and are increasing. Huge sums have been invested to allow electric transmission systems to more easily move energy from renewable resources. Still, today, ERCOT is facing a shrinking reserve margin (the difference between generation capability and system load).
Yet, for all this change, there is one constant: our continuing gratitude to our electric service customers. Some have been with us for most or all of these ten years. Others not quite so long, but have still honored us with their loyalty, and we want to say that it is appreciated. We cannot thank you all by name here, but we are truly grateful.
None of us can fully predict what the shape of the ERCOT market will be in another ten years. However, you can be certain that OnPAC Energy will work diligently to find ways to continue to provide you with competitive pricing and the quality of service you have become used to. We have already taken the step of entering into an agreement with a Fortune 500 company, which will enable us to more economically serve our customers going forward. As more changes occur in the market, we are ready to adapt as necessary.
So, again, thank you very much for your support these last ten years. We look forward to another ten years of being your electric service provider,