Energy Deregulation
Legislatures and the public utility commissions of many states have opened competition for electricity and natural gas supply. The measures allow consumers of energy to choose their supplier, while the delivery of the energy is still regulated and is the responsibility of the utility company.
In the past, one company provided all parts of your electric service (generation, transmission and distribution, and retail sales). With competition, these parts are separated into different companies.
Generation, or production of electricity has resulted in ample supply of new, cleaner and more efficient power plants throughout the US.
Transmission and distribution is the actual delivery of electricity across poles and wires and natural gas through pipelines to your business. These services are provided to you by your local utility company, which is responsible for maintaining the poles and wires, or pipelines, and responding to emergencies and power outages. The public utility commission continues to regulate transmission and distribution to ensure the safety and reliability of your services.
Retail Sales is the sale of electricity and natural gas to end users, coupled with customer service and billing functions. With energy competition, electricity and natural gas suppliers, which are certified to do business by the Public Utility Commission, sell energy to you and provide functions such as customer service and billing. These suppliers compete for your business by offering lower prices, renewable energy options, added customer service benefits or other incentives.