Electricity Providers
Prior to electricity deregulation in select areas of the United
States, the electricity that powered homes and businesses seemed to come
from one place: the utility company. Of course, it’s always been more
complex than that! With electricity deregulation continuing to expand,
residents and businesses should make sure to understand where their
electricity comes from, how it’s delivered, and how the cost is divided.
Similarly, the 1996 Order 888 from the Federal Energy Regulatory Commission required utilities to open their transmission lines to competitors. This opened the door for states to pursue deregulation, and nearly half have done so.
Electric Service After Deregulation:
Going back to the three components of the electric grid, customers in
deregulated areas can choose who supplies their electricity. This is
different from the distribution, transmission, and generation of
electricity.
Generally, the generation of electricity is unrelated to anything on your bill. Power plant companies generate electricity and sell it to utilities as well as retail electricity providers in deregulated areas. The electricity is then resold to you, the customer. Transmission and distribution is taken care of and charged to you by your utility, regardless of what company supplies the electricity. These charges are separate from the supply portion of your bill.
Deregulation allows you to choose from a variety of retail electricity providers, much like you’d shop around for a telephone or internet provider. When choosing an electricity provider, the process is completely hassle-free. You will not have any service interruptions, your electricity will still be just as reliable as before, and your monthly bill will continue to arrive. If your power goes out, your utility will still be the one to call. The only change will be under the supply portion of you bill. There, you will see the provider you selected and the rate you approved.
In deregulated areas of the country, competing retail electricity providers offer a range of packages for residential consumers. Plans may have fixed- or variable-rates, may have terms that last from one month to two years, and may include partial or 100% renewable electricity.
Deregulated areas can be found in all or parts of Illinois, Texas, Ohio, Pennsylvania, New York, New Jersey, and Maryland as well as several other states in New England.
Electric Service Basics
Electric service is made up of three separate parts, collectively referred to as the “electrical grid”:- Generation – Generation is the production of electricity by power plants
- Transmission– Transmission is the movement of electricity from the point of origin to a distribution system
- Distribution– Distribution is the delivery of electricity to customers’ homes or businesses by utility companies
Similarly, the 1996 Order 888 from the Federal Energy Regulatory Commission required utilities to open their transmission lines to competitors. This opened the door for states to pursue deregulation, and nearly half have done so.
Electric Service After Deregulation:
Retail Electricity Providers
Going back to the three components of the electric grid, customers in
deregulated areas can choose who supplies their electricity. This is
different from the distribution, transmission, and generation of
electricity.Generally, the generation of electricity is unrelated to anything on your bill. Power plant companies generate electricity and sell it to utilities as well as retail electricity providers in deregulated areas. The electricity is then resold to you, the customer. Transmission and distribution is taken care of and charged to you by your utility, regardless of what company supplies the electricity. These charges are separate from the supply portion of your bill.
Deregulation allows you to choose from a variety of retail electricity providers, much like you’d shop around for a telephone or internet provider. When choosing an electricity provider, the process is completely hassle-free. You will not have any service interruptions, your electricity will still be just as reliable as before, and your monthly bill will continue to arrive. If your power goes out, your utility will still be the one to call. The only change will be under the supply portion of you bill. There, you will see the provider you selected and the rate you approved.
In deregulated areas of the country, competing retail electricity providers offer a range of packages for residential consumers. Plans may have fixed- or variable-rates, may have terms that last from one month to two years, and may include partial or 100% renewable electricity.
Deregulated areas can be found in all or parts of Illinois, Texas, Ohio, Pennsylvania, New York, New Jersey, and Maryland as well as several other states in New England.
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