Where We Operate
If your company operates in a deregulated energy market, you should be taking advantage of the benefits the market has to offer, including utilizing a full-service energy advisor like Tradition Energy to help you navigate the competitive landscape and find an energy management solution that is strategically tailored to your business.
Through relationships with over 30 of the world’s largest and most reliable energy suppliers, Tradition Energy delivers innovative products, competitive rates, and a broad range of services in every regulated and deregulated energy market in the US.
To learn about energy deregulation in your area, click on a state below.
- Connecticut
- Delaware
- Illinois
- Maine
- Maryland
- Massachusetts
- Michigan
- New Hampshire
- New Jersey
- New York
- Ohio
- Pennsylvania
- Rhode Island
- Texas
Connecticut
For decades, just two companies, Connecticut Light & Power (CL&P) and United Illuminating (UI), generated and distributed electricity in Connecticut. Today, while CL&P and UI continue to deliver the electricity, you now have the ability to choose your electric supplier, which generates the power you consume.
In 1998, the Connecticut Legislature passed a law that opened the electric generation market to retail competition, effective Jan. 1, 2000. The same legislation created Standard Offer service from January 1, 2000 through December 31, 2003. The Standard Offer period applied only to residential consumers and small businesses. Large businesses and industrial customers were continuing to receive power based on earlier contracts with CL&P and UI.
On January 1, 2000, customers were automatically placed on Standard Offer with its built-in rate reduction of 10% (10% below the 1996 rates which were the same rates in 1999). Standard Offer was created by the Legislature to ensure that consumers received savings while electric competition was developing. During the Standard Offer period, unless consumers had already chosen a different supplier, they were continuing to receive their electricity from companies that either CL&P or UI contracted with to provide electricity to their customers. By law, CL&P and UI each had wholesale power contracts at a fixed price, and total customer bills were required to be at least 10% less than they were (for equal usage) under rates that were in effect on Dec. 31, 1996, the same rates that were in effect on Dec. 31, 1999.
The upside was that Standard Offer provided protection, via a price cap, for the consumer (10% below the 1996/1999 rates). The downside was that the cost for the electric supplier to purchase power in the wholesale market was close to, or higher than, the standard offer rate. CT’s competitive electric market was slow to develop. As a result, parts of the Electric Restructuring bill (Public Act 98-28) needed to be modified.
The Revised Electric Restructuring bill (Public Act 03-135) was signed into law on June 27, 2003 and created the Transitional Standard Offer (TSO) Period (2004-2006). The Transitional Standard Offer period replaced the Standard Offer period (2000-2003) and was in effect from January 1, 2004 through December 31, 2004. In order to encourage more electric suppliers to do business within the state, the TSO removed the 10% rate reduction. The TSO was designed to ensure stable rates, encourage the development of renewable energy and continue an orderly transition to a competitive marketplace beginning in 2007.
Effective January 1, 2004 and beyond, the law required that two line item charges for congestion costs, bypassable (or energy-related) and non-bypassable (or reliability-related) costs, be added to customer bills. These costs are federally-mandated and may vary over time.
On Jan. 1, 2005 there was an extension of the Transitional Standard Offer period to reflect the electric rate increase of 10.3 %. The contributing factors of this increase were: the price of crude oil, the price of natural gas and the federally-mandated congestion costs (FMCCs).
As a result of growing interest in renewable energy, the Department of Public Utility Control (DPUC) established an alternative to Transitional Standard Offer (TSO) that offers Connecticut’s electric consumers a clean energy choice. This alternative, CT Clean Energy Options, provides an environmentally friendly alternative to traditionally generated electricity.
On March 3, 2005, The Department of Public Utility Control (DPUC) announced the names of the winning bidders for the “CT Clean Energy Options” program. The program began on April 1, 2005.
The first step in switching your business’ electricity service is signing a Letter of Authorization (LOA) that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Delaware
In 1999, the General Assembly passed legislation restructuring the electric industry in Delaware. Prior to restructuring, the generation, transmission, and distribution of electric power by investor-owned utilities was fully regulated by the PSC. With restructuring, the generation of electric power became deregulated, leaving only distribution services under the regulatory control of the PSC.
In 2006, faced with significantly increased energy costs, the General Assembly passed a revision to the restructuring legislation entitled “The Electric Utilities Retail Supply Act of 2006.” The Act provides that all electric distribution companies subject to the jurisdiction of the Commission would be designated as the standard offer service supplier and returning customer service supplier in their respective territories. The Act provided further opportunity for distribution companies to enter into long and short-term supply contracts, own and operate generation facilities, build generation and transmission facilities, make investments in demand-side resources and take any other Commission approved action to diversify their retail load supply. Additionally, Delmarva Power is required to conduct Integrated Resource Planning for a forward-looking 10 year time frame and to file such plan with the Commission, the Controller General, the Director of the Office of Management and Budget and the Energy Office every two years beginning December 1, 2006. As part of the initial planning process, Delmarva Power is required to file a proposal to obtain long-term supply contracts. The proposal requires Delmarva Power to include a Request for Proposal (RFP) for the construction of new generation resources within Delaware.
The first step in switching your business’ electricity service is signing a Letter of Authorization (LOA) that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Illinois
Illinois legislators signed into law a retail competition program in 1997, to be fully implemented by May 2002. Non-residential customers were first given the opportunity to choose their electricity supplier, followed by residential customers. In 1998, residential customers of investor-owned utilities received rate reductions as high as 15%. These reductions helped to lower retail prices across the state.
Through the 1990s, Illinois’ nominal retail electricity prices—prices unadjusted for the effects of inflation—were relatively stable, ranging from a high of about 7.69 cents per kilowatt hour (kWh) to a low of 6.97 cents per kWh in 1999. Partly because of the rate reductions in 1998, nominal prices decreased in 1998 and then again in 1999.
In 1999, residential customers in Illinois paid an average of 8.83 cents per kWh, slightly higher than the national average of 8.16 cents per kWh for all residential customers. Industrial customers paid an average of 5.02 cents per kWh, which also was slightly higher than the national average of 4.43 cents per kWh for industrial customers.
The first step in switching your business’ electricity service is signing a Designation of General Account Agent form that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Maine
In May 1997 an electric restructuring bill was signed into law in Maine. The law required utilities to sell off their generation assets and allowed customers to choose an electric supplier. Since March 2000, residential, commercial and industrial customers have been served either on a standard offer service (SOS) rate or by a competitive supplier.
In Maine, the SOS rate is determined competitively as a result of an auction that is overseen by the Public Utility Commission. The state does not offer a default service or other similar rate. Customers who choose to leave their competitive supplier and return to SOS are required to remain on it for a period of a year once they return (some exceptions are permitted).
The first step in switching your business’ electricity service is signing a Letter of Authorization (LOA) that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Maryland
Maryland electricity consumers (except some served by co-op utilities) have had the ability to choose their power providers since July 2000. As a part of its restructuring order, the Maryland Public Service Commission (PSC) froze the State’s utility rates for various time periods depending on the amount of energy consumed by the customer. This price freeze ended for large commercial and industrial customers (using more than 600 kilowatts) as of June 1, 2005. Now these customers have an hourly priced utility default supply service. Customers interested in fixed price electric service can obtain a quote from a competitive retail energy provider.
The PSC also designated Maryland utilities as the default provider, or the Provider of Last Resort (POLR), for customers who do not choose an alternative electric provider. The POLR Standard Offer Services are provided at market-based prices determined by a competitive bidding process.
The first step in switching your business’ electricity service is signing an Electric Supplier Authorization Form that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Massachusetts
With the passage of the Electricity Restructuring Act, the Massachusetts electricity market opened in November 1997. For the first seven years the competitive marketplace included standard offer service, a state-controlled rate, which distribution companies provided to their customers who had not chosen a competitive power supplier.
On March 1, 2005, standard offer service ended, and all customers were moved to a more variable market-based rate called basic service. Those on basic service only show three months of pricing at a time and are exposed to market fluctuations with rate changes as often as four times a year. Customers who enter into agreements with competitive suppliers are able to lock in rates for longer periods of time.
The first step in switching your business’ electricity service is signing a Letter of Authorization (LOA) that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Michigan
The Michigan Customer Choice and Electric Reliability Act (Public Act 141) passed in 2000 went into effect January 1, 2002, allowing customers to choose their electricity provider and bringing competition to the generation side of the electricity market.
For customers who do not choose to switch suppliers, utility default service rates are available and vary by customer class. Residential rates were capped until January 2006, and customers switching to utility default service have a 12-month minimum stay requirement. Utility rates are set via periodic proceedings conducted by the Public Service Commission. Because Detroit Edison and Consumers continue to own generation assets, their default service rates are predominately derived from their own generation and other costs.
The first step in switching your business’ electricity service is signing a Customer Usage Information Authorization Form that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
New Hampshire
New Hampshire passed a restructuring law in 1997 and the State’s largest utility, Public Service New Hampshire (PSNH) entered into a settlement agreement in 2000. Since that time the Public Utilities Commission has conducted a number of rate proceedings to implement choice. However, the model (generation costs are not completely separate from other aspects of the bill) limits choice and competition.
Rate structures and generation supply costs vary by utility and customer class. PSNH’s backstop rates are based on the utility’s assets and some market purchases. These are scheduled to change bi-annually. Granite State’s rate is based on market purchases and changes on an annual basis although exception may be permitted. Customers who switch to a supplier and switch back are placed on a different default service rate.
The first step in switching your business’ electricity service is signing a Customer Authorization Letter (for Unitil customers) or Request for Historic Consumption Data/Interval Data form (for Public Service of New Hampshire customers) that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
New Jersey
On August 1, 2003, the NJ Board of Public Utilities removed electricity rate caps that had been established by New Jersey’s electric utilities. The largest non-residential electricity customers in New Jersey remaining on utility service are on now default electricity rates that vary with regional power pool hourly prices. These large electricity customers (1,250 kW peak usage and above) are known as “Commercial and Industrial Energy Pricing” (CIEP) customers and are exposed to these variable, market-based rates. All non-residential customers remaining on utility service with usage less than 1,250 kW are on a fixed price that is established annually by an auction conducted by the NJ Board of Public Utilities.
The first step in switching your business’ electricity service is signing a Customer Usage Information Authorization Form that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
New York
Unlike most states, which deregulated the energy industry by legislative act, the New York State Public Service Commission (NYPSC) deregulated the state’s electric industry through a series of voluntary “rate/restructuring” settlement agreements with the incumbent vertically integrated monopoly electric utility companies.
In 1998, New York opened its electric industry to retail competition. Each of the state’s seven major utilities submitted a restructuring plan to phase in retail competition by 2001 or sooner. State regulators believed that competition would help lower New York’s retail electricity rates, which have been among the highest in the nation.
Through the early 1990s, New York’s nominal electricity prices—prices unadjusted for the effects of inflation—increased, reaching a high of 11.13 cents per kilowatthour (kWh) in 1996. Prices decreased slightly in 1998 and 1999, brought on, in part, by immediate rate reductions or rate freezes called for in each of the utilities’ restructuring plans.
Because electricity rates were increasing more than inflation during the early 1990s, New York’s real electricity prices—prices from which the effects of inflation are eliminated—increased through 1993, then decreased, reaching 10.4 cents per kWh in 1999.
In 1999, residential customers in New York paid an average of 13.32 cents per kWh, which was substantially above the national average of 8.16 cents per kWh for all residential customers. On the other hand, industrial customers paid an average of 4.77 cents per kWh, which is relatively close to the national average of 4.43 cents per kWh for industrial customers.
The first step in switching your business’ electricity service is signing a Customer Usage Information Authorization Form that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Ohio
Ohio utilities provide default service (Standard Service Offer) through their 3-year Rate Stabilization Plans (RSPs). AEP, Duke, and FirstEnergy’s RSPs will expire December 31, 2008. Dayton Power & Light’s RSP will expire December 31, 2009. On May 1, 2008, Ohio Governor Strickland signed Senate Bill 221 into law, laying out the state’s plans for the post-2008 retail electric market structure. Under the new Ohio law and the proposed enabling regulations, utilities may decide to propose a Market Rate Option (MRO) for default pricing, but are not required to under any circumstance (in contrast, TX had a “retail clawback” provision pre-2007 that mandated market-based rates if >40% of a utility’s res/small C&I customers were purchasing power competitively). In Ohio, the PUCO is the ultimate determinant of whether a utility’s default rate structure will afford competitive suppliers headroom, which will be unlikely if the PUCO opts to keep generation costs capped under an Electric Security Plan (ESP). Fundamental questions regarding incumbent rates and customer choice economics will not be clear until the Ohio utilities file their default service plans and the PUCO approves the final enabling regulations for post-2009 competitive markets.
Pennsylvania
The State of Pennsylvania is open for competition for all customers with the exception of those that are served by a municipality or co-op utility. Pennsylvania customers may buy electricity supply service from any supplier licensed by the Pennsylvania Public Utility Commission and certified in the service territory of their local distribution company or from a “default provider” at a published tariff rate that is set each year. With the exception of customers in the Pittsburgh area, this rate generally increases by about 1.5% each year. In Western Pennsylvania, customers can expect the Duquesne and Penn Power default supply rate to vary from year to year because it is pegged more closely to the wholesale electricity market.
For all other areas other then Duquesne and Penn Power, the utility supply service rates are fixed, and will escalate until they expire in the 2008-2011 timeframe, depending on when each individual distribution company’s transition period is set to end. The difference in utility rate structures creates a pronounced difference in shopping rates amongst the state’s commercial and industrial customers.
The Pennsylvania Power (“Penn Power”) service territory electricity rate caps will expire on January 1, 2007 and new rates will go into effect. Penn Power posted its final Request for Proposals for Provider of Last Resort (“POLR”) supply on May 5, 2006 and received bids on May 31st and July 18th. The new POLR rates will be released on or before October 16, 2006, and will go into effect on January 1, 2007 through May 31, 2008.
Customers choosing hourly priced service (“HPS”) offered by Penn Power as one alternative to POLR have until December 1, 2006 to notify the utility of their election. Customers electing HPS must have appropriate metering and have peak demand >500 kW. If a customer elects HPS, they cannot return to POLR service until May 31, 2008.
The first step in switching your business’ electricity service is signing an Electric Supplier Authorization Form that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Rhode Island
Rhode Island’s electricity market opened to competition in July 1997 and was the first State in the nation to allow customers to buy electricity from competitive energy suppliers instead of their local utilities. Today, customers remaining with the utility are placed on a Standard Offer (SO) rate. The SO rate is based on a competitive supply contract obtained by the utility and approved by the Rhode Island Public Service Commission. The rate may be periodically adjusted for fuel costs.
The first step in switching your business’ electricity service is signing a Customer Authorization Letter that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.
Texas
Retail electric competition was introduced in Texas in May 1999 after the State Legislature passed the Public Utility Regulatory Act of Texas, also known as Senate Bill 7. Deregulation went into effect January 2002, enabling Texas industrial and commercial customers to choose from a wide range of retail electric providers (REPs) certified by the Public Utility Commission of Texas.
Soon after its enactment, many customers in Texas utility territories were switched to the retail affiliated REP, which was created by the former local electric utility to provide electricity services to customers under the pricing model known as Price to Beat (PTB). The PTB is a regulated rate that is periodically adjusted to reflect fuel costs. Customers consuming annually over 1 megawatt (MW) that are not with a competitive retailer have a variable rate based on market conditions. The PTB option expired for all customers in January 2007.
Not all area of the state are regulated. The Public Utility Commission of Texas, at the direction of the Texas Legislature, has postponed electric competition in some areas to ensure the development of sufficient infrastructure. Customers of El Paso Electric, Entergy Gulf States Inc., Mutual Energy-Southwestern Electric Power Company and Xcel Energy will have choice at a later date. Electric cooperatives and city-owned utilities may decide whether their customers will have a choice of Retail Electric Providers. Customers should contact their electric cooperative or city utility for more information.
The first step in switching your business’ electricity service is signing a Letter of Authorization (LOA) that grants permission to Tradition Energy to gather historical electricity usage data from your utility. Your Tradition Energy advisor will analyze this data to understand your business’s energy consumption patterns and design an energy strategy customized to your needs.