14 Oct Does My State Have a Deregulated Energy Market?
For decades, residential and business electricity users could only buy power from the local electric utility company. Energy deregulation changed the energy market, eliminating the utility companies’ monopolies, increasing competition, lowering costs, and improving service. Those in states with competitive energy markets can choose rates, terms, and specialized product offerings to fit their needs.
How Does Electricity Deregulation Work?
Each electricity producer offers to sell energy at the lowest possible rate. Independent agencies buy it to meet their predicted demand, and they set customers’ rates. Energy goes through the existing utility infrastructure to your home or business. Utility companies own the infrastructure, transmit the energy, and maintain the system, but they don’t set the rates energy users pay.
How Does Natural Gas Deregulation Work?
While more attention has been focused on electric utility deregulation, the natural gas industry deregulation has also been going on for years. Before 1978, gas producers sold their product to interstate pipeline companies. They sold it to local gas utility companies, which sold the gas to end users. State and federal governments regulated the prices producers and pipeline companies charged.
New federal law changed in 1978, which set in motion natural gas deregulation. There are customer choice programs for small commercial and residential gas users. Nonutility gas suppliers, or gas marketers, buy natural gas and arrange its transportation to the local gas company. They deliver it to customers. Though price is determined by supply and demand, the fact that there are multiple suppliers brings competition to the market.
How Do Businesses Benefit From Energy Deregulation?
It allows energy suppliers to develop business energy options in response to the wants and needs of their customers. Different industries have their own electricity and gas needs and usage patterns. Competition forces suppliers to be flexible, and offer lower prices, while customers get the best value for their dollar.
Where are Energy Markets Deregulated?
The following states have deregulated electricity markets:
- California
- Connecticut
- Delaware
- Illinois
- Maine
- Maryland
- Massachusetts
- New Hampshire
- New Jersey
- New York
- Ohio
- Oregon
- Pennsylvania
- Rhode Island
- Texas
- Washington, DC
States with deregulated gas markets are:
- California
- Colorado
- Connecticut
- Florida
- Georgia
- Illinois
- Indiana
- Iowa
- Kentucky
- Maine
- Maryland
- Massachusetts
- Michigan
- Montana
- Nebraska
- New Hampshire
- New Jersey
- New Mexico
- New York
- Ohio
- Pennsylvania
- Rhode Island
- South Dakota
- Texas
- Virginia
- Washington, DC
- West Virginia
- Wyoming
Not all deregulation is the same in all states. There are variations in how it works depending on the state.
How Paramount Energy Management Can Make Deregulation Work for Your Business
We help our clients find the right provider and the best plan to meet their needs. That not only can provide you with substantial financial savings, but it eliminates the need for you to take the time to do this. Our energy experts will do all the work for you by comparing plans and negotiating the lowest rate tailored to your business’s specific needs.
Paramount Energy Management doesn’t stop there. We will make sure you continue to get the best rate through our active ongoing energy management program. We are your one-stop shop for all your energy needs at no cost to you.
Paramount Energy Management Can Be Part of Your Team
Paramount can provide you with the highest level of expertise, service, and value. Whether you’re a small business or a large organization, we can help you control your energy costs and achieve your sustainability goals. Please fill out our online contact form or email us at info@pemllc.net today to learn more.