SMECO is a member-owned Electric cooperative serving approximately 150,000 customers (see exhibit 1) in the quaternary Southern Maryland counties of Calvert, Prince George’s, St. Charles, and St. Mary’s (see exhibit 2). The hencoop has provided role to residential, commercial and industrial customers in its service grunge for more than 70 years. New residents, either individuals or businesses that apparent movement into this territory are all potential customers to SMECO.
payable to the electric industries restructuring, which includes deregulation and a movement towards competition, SMECO finds itself in a alone(p) position in the market. As an Electric Distribution club (EDC), SMECO is responsible for all the distribution services, which include the functions of metering, billing, customer service, outages, and authority quality. In addition, SMECO provides physical delivery service of electricity to its customers. Due to the nature of the product (energy delivery requires poles and electric equipment to be installed on the road) and Government regulation, an EDC market is considered a natural monopoly. With the advent of deregulation, electric energy is now considered a commodity and is traded in a free market.
It is regulated only by consumer demands and supply bids and a few broad market rules. Under this restructured market, SMECO is also an force Service Provider (ESP). As an ESP, SMECO competes in an oligopoly market or to an extent, a free market where other Energy suppliers pot capture SMECO’s customers.
Currently, there are no major competitors to SMECO. The electric distribution market was regulated until the late 1990s, and since deregulation, SMECO has offered the outperform energy price to customers in its service territory collectable to its long-term power contracts and power purchasing strategies negotiated through its power marketing company partner, ACES. Potentially, any electric service...If you want to keep up a full essay, order it on our website: Ordercustompaper.com
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