UBRG News .01 Universal Bioenergy's NDR Energy Group Launches New Wholesale Electric Power Division to Increase Revenues
2012-07-02 06:00 ET - News Release
IRVINE, Calif., July 2, 2012 (GLOBE NEWSWIRE) -- Universal Bioenergy Inc., (OTCMarkets:UBRG), a publicly traded independent diversified energy company, in its plans for growth and expansion, announced today that its subsidiary NDR Energy Group, has established a new division to market and distribute wholesale electricity throughout the U.S. to generate increased revenues and profits. Universal already markets and distributes natural gas, propane, petroleum and coal, and now it will expand into electric power.
The new division will market and distribute bulk wholesale electric power to its current electric utility customer base and its expanding customer base which will include federal and state agencies, U.S. military, cities, municipalities and large commercial and industrial companies. NDR Energy Group will be able to offer integrated energy solutions that will assist its growing customer base to buy, manage and use electricity and natural gas.
Electricity is often generated by an electric power utility that will not deliver it to the ultimate end user or customer. A single megawatt (MW) of electricity can typically provide enough power to light 750 to 1,000 homes. Electricity is a commodity like oil, gas, coal, and coffee, and it is often bought, traded and re-sold many times before it is finally consumed by the end user. These transactions make up the wholesale electricity market and are considered "sales for re-sale".
The U.S. Congress passed laws in the 1980's to make it possible for independent companies and power marketers to engage in wholesale power sales and energy trading, as electric utilities began to share grids and buy and sell electricity from one another. Due to the interstate nature of the sales, the wholesale market is regulated across the country by the Federal Energy Regulatory Commission (FERC).
