In Texas

Texas is the world's 11th largest electricity market. Its population is expected to grow 60% between 2000 and 2030. To ensure that Texas will have the affordable power it will need to support this growing population, the state has 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 the Electricity Reliability Council of Texas (ERCOT) as the independent operator of the Grid, and began linking together generators, energy delivery companies and retail electric providers ("REPs") such as 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. For issues relating to meters, power quality, new construction, meter installation, tree trimming and outdoor lighting, consumers call these delivery companies directly.

Retail competition 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 chose 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.

In New York

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

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 consumers a choice among ESCOs. The local utility will continue to deliver power to homes and businesses and will continue to be regulated by the PSC.

In New York's competitive energy market, 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.

Ambit Energy is an Energy Service Company (ESCO) approved by the New York Public Service Commission to sell electricity and natural gas service in the State of New York. Ambit buys energy in bulk from power plants so we can pass the savings on to New York consumers at a competitive price.

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 power to the residence. Delivery charges typically encompass 50% of the total charges on an energy bill. As a state-approved ESCO, Ambit Energy charges for the supply of energy - in other words, for the amount of power actually used.

When a customer chooses Ambit Energy, 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.