Energy Deregulation by States
Electricity Providers in Texas: Ambit Energy
Ambit Energy is a retail energy provider for residential and commercial energy markets that have been deregulated by the state. Ambit Energy has taken advantage of the competitive nature of deregulated energy markets and was able to expand its service potential to new customers, which has helped to make it one of the fastest growing corporations in the United States in 2010.
The History of Ambit Energy
Ambit Energy was founded in 2006 by Chris Chambless and Jere Thompson Jr. with the main objective of supplying energy to consumers in Texas. It focused on providing efficient service to its customers, while controlling company costs. Ambit Energy quickly spread to other deregulated markets in the United States, and by 2011, the company had customers in Illinois, Maryland, New York, Pennsylvania and Texas. In 2010, Inc. Magazine named Ambit Energy the fastest growing private company for the year. As of August 2011, Ambit has over 600,000 residential and commercial customers in the five states where they currently operate. It also claims to be on course to signing up over 1,000,000 subscribers by 2012.
Ambit Energy's Business Model
Like all retail energy providers, Ambit does not actually produce energy or maintain the energy distribution networks. Rather, Ambit serves as an energy broker. They purchase large amounts of energy at discounted rates from companies that create electricity. By doing this, Ambit seeks to negotiate the best deal for their customers, securing the lowest energy prices possible.
Instead of being required to purchase power from a single utility, as is the case in most regulated markets, customers can choose between a number of providers. This allows Ambit Energy to capitalize on market conditions and flexibly adjust their policies when those conditions change. This flexibility extends into promoting environmentally responsible energy usage. Customers of Ambit Energy have the ability to select power that was created by companies that use renewable and "green" electricity generation processes. This service is popular among many customers who are looking to reduce their carbon footprint. This adaptability will no doubt contribute to Ambit Energy's continued growth and success in the future.