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The State of Deregulation in America

June 18, 2015
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Over the past several decades, more states have taken steps towards the deregulation of many large scale power companies across the nation. Some states continue to operate pilot programs to test the waters of energy supplier deregulation, while others have yet to address how to implement such measures. To help you understand today’s state of deregulation for the energy industry, you must take into account how deregulation affects you, your friends, and your family.

What Does Deregulation Do?

Deregulation allows companies to compete to provide customers with natural gas and electric service.  Historically, regulations resulted in a primary power company obtaining a monopoly over specific markets, which decreased competition and increased inefficiencies in the industry. Monopoly utilities were originally designed for serving fewer customers in smaller geographic areas, but expanded wholesale markets for natural gas and electric, and open access to gas and power lines, have made it much more practical and efficient for companies to compete to serve gas and electric to customers.

How Deregulation Drives Down Cost.

Deregulation levels the playing field by increasing competition between energy suppliers. The competition allows customers to make a choice of energy supplier, which encourages energy companies to explore more efficient energy options and decrease prices. For example, an independent energy company, such as IGS Energy, can focus on working with you  to offer you more flexibility in our products and pricing. Public utilities cannot not offer the same flexibility and product offerings to customers. Furthermore, an energy supplier can tailor services and products to meet the needs of its geographic area. For example, energy needs may be less in moderate climates while others in desert conditions will need more power for AC units in the summer.

As deregulation of the energy industry takes effect in more states, exhibited in this map, your options for choosing an energy supplier will continue to grow.

Sources

http://www.quantumgas.com/list_of_energy_deregulated_states_in_united_states.html

http://www.washingtonpost.com/wp-adv/specialsales/energy/report/article10.html