A contestable customer is defined as a customer with demand of at least how many MW, according to the Energy Regulatory Commission?

A contestable customer is defined as a customer with demand of at least how many MW, according to the Energy Regulatory Commission?

• A. 0.5 MW
• B. 1 MW
• C. 5 MW
• D. 10 MW

Answer: (B)

In deregulated electricity markets, there is a minimum load a customer must have to participate in the contestable (competitive) market. The Energy Regulatory Commission sets this threshold to ensure customers have enough demand to justify switching to a Retail Electric Supplier and handling the associated contracts and metering. That threshold is 1 MW, meaning any customer with demand of at least 1 MW qualifies as contestable and can choose their supplier, while smaller customers typically stay with the incumbent utility. The other values don’t match this regulatory rule: 0.5 MW is below the threshold, and 5 MW or 10 MW are above it but not the defined limit used for standard contestability.

In deregulated electricity markets, there is a minimum load a customer must have to participate in the contestable (competitive) market. The Energy Regulatory Commission sets this threshold to ensure customers have enough demand to justify switching to a Retail Electric Supplier and handling the associated contracts and metering. That threshold is 1 MW, meaning any customer with demand of at least 1 MW qualifies as contestable and can choose their supplier, while smaller customers typically stay with the incumbent utility. The other values don’t match this regulatory rule: 0.5 MW is below the threshold, and 5 MW or 10 MW are above it but not the defined limit used for standard contestability.