What is Deregulation?

In the past, one utility provided the three components of your energy service: generation, transmission and distribution. Legislatures and the public utility commissions 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.

Under Deregulated Markets:

  • You can go direct and choose the company that produces energy, or the company who buys it on your behalf to sell to you.
  • There is flexibility to create an energy strategy that suits your individual needs.
  • The reliability of transmission and distribution is guaranteed and regulated by the PUC.
  • Price protection from market volatility and rising costs is possible.
  • There are potential savings including tax savings in some markets.