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Wholesale Electricity Markets

Learn about the differences between retail and wholesale electricity markets and how electricity is sold on the wholesale market.

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I. Comparing Resale and Wholesale Markets

The electricity system can be broken down simply into three main parties: generators, resellers, and end users. Electricity is generated at a generating facility, such as a coal-fired power plant, and then sold to resellers, such as an electric utility company. Generators transmit electricity to resellers at a high voltage measured in megawatts. The next step in the electricity system occurs when resellers sell electricity to end users, also known as...