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Energy
Deregulation
What is Energy
Deregulation?
It used to be that people
didn’t have the freedom to
choose where they bought
their power from. Every state
had basically one source of
electricity or gas and you
had to buy from them,
regardless of price.
Now however, some
states have started to
deregulate power. This
means that you have
the freedom to choose
another utilities
company to buy power
from.
What Makes
Deregulated Power So
Controversial?
For years utilities like gas
and electricity have been
controlled by the
government. This ensured
that health and safety
measures were properly
monitored, but it also
unfortunately created a
monopoly of power that
made it possible for prices to
rise without anything to
check or lower them.
Deregulated power
creates independent
companies that
provide competition,
and it’s the first time
that energy has
been deregulated.
Deregulation Doesn’t Mean
Using Different Power
Just because power
is deregulated it
doesn’t mean that
there are independent
companies popping
up all over with
access to different
power sources. All
the power generally
comes from the same
places.
What deregulated means is that
these new independent utility
companies offer different pricing
options and policies, some of
which are oftentimes a better fit
for you depending on your
circumstances or location.
What Does Deregulation Mean
For You?
This is how it all
works. You have the
companies that
provide energy or
natural gas, which
they in turn sell to all
the available retail
suppliers like the
traditional
government suppliers
and the new
independent
suppliers in
deregulated states.
These suppliers sell their
utilities through your familiar
local utilities provider who
then sends the power
directly into your home or
business.
The Benefits of Deregulated
Energy
Consumers now
have a choice about
what company
provides electricity
and gas for their
homes and
businesses.
This ultimately lowers the cost of
utilities and products because
suppliers are now competing with
each other.
The Future of Deregulated Energy
As of now, not all
states allow
deregulated energy,
and it might take
years until the entire
United States
passes the
necessary laws
making deregulated
power legal.
So far only 13 states give people the choice to
find an alternate gas or electric utilities company
to obtain power from and 18 states have yet to
even make deregulated power legal.
How Do you Get Your Utilities?
As a consumer, you might
not even notice the
difference at first. The utility
company in your area is
still responsible for the
distribution of the power to
your home regardless of
the supplier you choose.
However, the supply price isn’t set by that same utility provider
anymore. Depending on where you live, you may still continue
to be billed by your utility provider, but you will see a mention of
your new supplier. Or, in some cases you will be billed directly
by your supplier.
How Will Deregulated Power Affect
the Economy?
Deregulation opens up a whole new
job market and a way to make
money. It’s also lowering utility costs
somewhat and creating healthy
competition and new jobs.
However,
deregulation of
energy is still so
new that we don’t
really know the full
effect it will have
on the long-term
utility distribution
system in the
United States.
Coming Soon to a State Near You?
If you’re unsure about the
deregulation laws in your
state, look it up today and
find out if there are
alternative energy options
available for you.

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Energy deregulation

  • 2. What is Energy Deregulation? It used to be that people didn’t have the freedom to choose where they bought their power from. Every state had basically one source of electricity or gas and you had to buy from them, regardless of price. Now however, some states have started to deregulate power. This means that you have the freedom to choose another utilities company to buy power from.
  • 3. What Makes Deregulated Power So Controversial? For years utilities like gas and electricity have been controlled by the government. This ensured that health and safety measures were properly monitored, but it also unfortunately created a monopoly of power that made it possible for prices to rise without anything to check or lower them. Deregulated power creates independent companies that provide competition, and it’s the first time that energy has been deregulated.
  • 4. Deregulation Doesn’t Mean Using Different Power Just because power is deregulated it doesn’t mean that there are independent companies popping up all over with access to different power sources. All the power generally comes from the same places. What deregulated means is that these new independent utility companies offer different pricing options and policies, some of which are oftentimes a better fit for you depending on your circumstances or location.
  • 5. What Does Deregulation Mean For You? This is how it all works. You have the companies that provide energy or natural gas, which they in turn sell to all the available retail suppliers like the traditional government suppliers and the new independent suppliers in deregulated states. These suppliers sell their utilities through your familiar local utilities provider who then sends the power directly into your home or business.
  • 6. The Benefits of Deregulated Energy Consumers now have a choice about what company provides electricity and gas for their homes and businesses. This ultimately lowers the cost of utilities and products because suppliers are now competing with each other.
  • 7. The Future of Deregulated Energy As of now, not all states allow deregulated energy, and it might take years until the entire United States passes the necessary laws making deregulated power legal. So far only 13 states give people the choice to find an alternate gas or electric utilities company to obtain power from and 18 states have yet to even make deregulated power legal.
  • 8. How Do you Get Your Utilities? As a consumer, you might not even notice the difference at first. The utility company in your area is still responsible for the distribution of the power to your home regardless of the supplier you choose. However, the supply price isn’t set by that same utility provider anymore. Depending on where you live, you may still continue to be billed by your utility provider, but you will see a mention of your new supplier. Or, in some cases you will be billed directly by your supplier.
  • 9. How Will Deregulated Power Affect the Economy? Deregulation opens up a whole new job market and a way to make money. It’s also lowering utility costs somewhat and creating healthy competition and new jobs. However, deregulation of energy is still so new that we don’t really know the full effect it will have on the long-term utility distribution system in the United States.
  • 10. Coming Soon to a State Near You? If you’re unsure about the deregulation laws in your state, look it up today and find out if there are alternative energy options available for you.