What is Deregulation?

Deregulation allows consumers and businesses the power to choose who supplies their electricity and natural gas and what price they will pay.  The utility companies are still responsible for transporting the commodity, maintaining natural gas pipelines and electric transmission lines, and respond to customers emergency needs.

Imagine Two Different Cities…

City One

In the first city, there is only one gas station and absolutely no competition. It’s convenient because all the prices are the same but they are high.  You, the customer, are obligated to give your business to the only gas station in town. If you want a better price, you would have to settle for what they have, because there are no competitors.

City Two

In the second city, there are gas stations that compete for your business in an attempt to influence your choice based on your wants and needs.  Because there is more than one gas station, this creates competitive pricing, more options, and better customer service.

Deregulation can be summed up in one word, CHOICE

This is almost exactly what has happened with utility companies.  Instead of being forced to get your energy at a price determined by the utility, you have the option to choose a different company and get a lower price.  If you’re like most people, you receive your electric bill each month, pay it and throw it away.  You may be paying more than you have to!

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