Energy Deregulation
In the past, one utility provided the three components of an consumers energy service: generation, transmission and distribution. Legislatures and the public utility commissions (PUC) of many states have created competition for electricity and natural gas supply. This allows consumers to choose their energy supplier, while the delivery of the energy is still regulated and is the responsibility of the local utility company.
In the past, one utility provided the three components of an consumers energy service: generation, transmission and distribution. Legislatures and the public utility commissions (PUC) of many states have created competition for electricity and natural gas supply. This allows consumers to choose their energy supplier, while the delivery of the energy is still regulated and is the responsibility of the local utility company.
Deregulated Generation:
With deregulation, you’re able to go direct and choose the company that produces energy, or the company who buys it on your behalf to sell to you.
Regulated Transmission and Distribution:
This is the actual delivery of electricity across poles and wires and natural gas through pipelines to your business by your local utility company. Your utility company is responsible for maintaining the poles and wires, or pipelines, and responding to emergencies and power outages. The public utility regulates transmission and distribution to ensure the safety and reliability of your services.
Energy Deregulation = Opportunity to Manage Exposure
With deregulation, you’re able to go direct and choose the company that produces energy, or the company who buys it on your behalf to sell to you.
Regulated Transmission and Distribution:
This is the actual delivery of electricity across poles and wires and natural gas through pipelines to your business by your local utility company. Your utility company is responsible for maintaining the poles and wires, or pipelines, and responding to emergencies and power outages. The public utility regulates transmission and distribution to ensure the safety and reliability of your services.
Energy Deregulation = Opportunity to Manage Exposure
- Competitive marketplace among energy suppliers
- Flexibility to create an energy strategy that suits your individual needs
- Freedom to choose suppliers, products, prices and terms
- Reliability-transmission and distribution regulated and guaranteed by the PUC
- Price protection from market volatility and rising costs-budget certainty
- Potential savings, including tax savings in some markets
- 41 states in the U.S. are deregulated
The purpose of energy deregulation is to break up the natural monopoly of local utility companies. Deregulation opens the generation portion of electric service to competition from alternative electric suppliers, giving consumers more control over their energy costs.
Before deregulation, consumers did not have a choice. The local electric company purchased electricity directly from power plants and charged the consumer a standard rate for electric service. If a consumer needed electricity, they had no choice but to purchase it at the standard rate from the local electric company.
Energy deregulation gives consumers the Power to Choose an alternative electric supplier and determine the rates and terms at which they purchase electric generation services.
