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FAQ
Answers to your most common questions
What is electricity deregulation?
Deregulation is the act or process of removing rules or regulations. As it applies to electricity, deregulation was sought to aid and spur competition among electricity providers. Congress passed the Public Utility Regulatory Policies Act in 1978. This act opened wholesale power markets to non-utility producers of electricity, creating the foundation for electricity deregulation.
With the Energy Policy Act of 1992, congress tried to promote greater competition in the bulk power market. Through this act, states were allowed to restructure their electric power industry to create more competition.
If you are located in a deregulated state, you have the ability to choose the EGS (electric generation supplier) company that generates and supplies the kilowatts that you use. The EDC (electric distribution company) that then delivers those supplied kilowatts from the regional grid to your home or business stays the same.
The simplest summary is that electricity deregulation is similar to deregulation of the telecommunications industry in the 1980’s, where following deregulation you could then choose your long distance provider. - Now you can simply choose a lower cost electricity supplier, or the company that actually makes the energy and kilowatts you use. Those kilowatts now are then “delivered” by your traditional power company (EDC) just as they always have been.
