Energy Deregulation in Texas & San Antonio

I thought that others could benefit from the following email exchange I had recently regarding Ambit Energy and energy deregulation, please start at the bottom and then read up so you can follow the exchange from the beginning…

Dan,

Haha, well on the contrary energy deregulation in Texas has been a massive success. The media just does not like to say anything positive, regardless of the topic, it’s not good for the business of delivering news that they are in. When talking to people in the know it is commonly accepted that deregulation is working, especially in Texas. If only more states would take a clue and follow suit the way we have done it.

  1. CPS is currently restructuring and preparing for deregulation. Come 2012 it is my understanding that they must be prepared to deregulate, but anything can happen between now and then, so there is no guarantee. One advantage of deregulating is that if they let people in to compete they can also now go out and compete elseware so they will have the opportunity to gain customers in other markets while they may lose some here. In addition, CPS would still get paid to deliver the electricity, which is a large chunck of the bill.
     
  2. I have full confidence that Ambit will be around for a very long time and expect to be with them until people stop using energy, which should be a long time from now. Every strategic advantage Ambit has revolves around our business model of being a network marketing company. We have proven that mlm is more effective and efficient than traditional marketing, especially for our industry, but there are no guarantees in life and here it is no different. So while it would make no sense whatsoever for Ambit to abandon their business model, the honest answer is that anything “could” happen, including a meteor strike. I for one am willing to stake my reputation and future on Ambit Energy, I hope you join us.

Hope this helps. Call me anytime.

Continued Success,

Shawn Cornett


Sent: Wednesday, June 03, 2009 5:39 PM
To: Shawn Cornett Damien Pechacek
Subject: A few nagging questions

This is Daniel — I was sponsored by Rodrigo, so I’m somewhere in your downline. I have been to several meetings at the Dominion, and have spent countless hours online trying to answer two fundamental questions about Ambit:

If energy deregulation has been so lackluster in Texas, and if CPS has had such success in generating money for the City of San Antonio, why on Earth would San Antonio even consider deregulating? I also have heard rumors about laws requiring S.A. to deregulate by 2012. Is there any truth to that?

As Ambit becomes a larger and stronger company, what are the chances that it will drop the MLM strategy and go for more traditional marketing? Is there a chance Ambit will be bought by another energy company? What I’m getting at, I guess, is this: how long do you anticipate consulting for Ambit?

Thanks in advance for taking the time to respond. I have absolutely no experience in MLM, so your leadership is much needed and appreciated.

Daniel

Write a comment: