Frequently Asked Questions
The deregulation of the electricity industry is similar to the deregulation of the oil and natural gas industry in that it divided the electricity business into three separate functions: production or generation, transportation or transmission, and supply.
- Generation – the production of electricity
- Transmission/Distribution – the transportation from production to end user
- Supply – the sale of the electricity
Deregulation allows you to choose your electricity supplier throughout different states across America; creating better prices and customer service.
Energy market regulation is managed on a state-by-state basis. Each of the 50 states retains the authority to determine for itself how energy supplies are made available to the people of that state.
Currently, the following states (and the District of Columbia) have introduced deregulated electricity markets to consumers in some capacity:
- Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New York, Ohio, Oregon, Pennsylvania, Rhode Island, and Texas
Currently, the following states (and the District of Columbia) have introduced deregulated natural gas markets to consumers in some capacity:
- Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming
Yes. The only difference is that you would also be saving money by converting to a different electricity supplier.
Your local utility owns the power lines that carry electricity to your business or organization and they will continue to bill you for the delivery of electricity at rates governed by the state.
In some cases you will receive a separate bill from your supplier and your utility, in other cases supply and delivery charges are combined on one bill.
The delivery system is still the responsibility of the utility and as such, its safety and reliability.
The utility will maintain the lines and repair them if there is an outage or storm.
The regulatory body overseeing utilities in your state will help to ensure that the utility continues to provide a safe, reliable delivery system for your use.
When you make the switch to a different energy supplier, your electrical service will continue uninterrupted. You will still have access to your usage and billing history appearing on your delivery bill from the utility.