For most people, electric utilities are still a monopoly industry. They have only one choice for their delivery and supply of electric power. However, in the past few decades that has begun to change. Now, seventeen states and the District of Columbia have deregulated many parts of their electric energy industry. Any state that retains it’s existing monopoly structure for utilities is a regulated state. Deregulated states are those who allow competitive electric markets.
Regulated energy markets were put in place in the 1930s as a means to control consumer costs, and ensure access. There are many utility monopolies, each with control over a specific geographical area in regulated states. These utilities regulated state utilities own all the infrastructure that we depend on for power deliver, including poles, wires, substations, and so forth. Regulated state utilities are also responsible for generation or purchase of power supply on the consumer’s behalf.
A rise in deregulated energy markets
In recent decades, U.S. consumers — in certain states — have gained an increasing level of control over their energy supplier. Energy supply represents the cost, and generation of energy. It is distinct from the delivery of that energy from power plant to homes.
Where regulated utilities are responsible for electricity supply, deregulated utilities are not. Consumers can choose their own supply, and the utility must deliver it over their infrastructure. In these deregulated energy markets, property owners enjoy the advantages that come with having options in how they power their homes and businesses. Independent suppliers are able to sell energy in the open market in direct competition with utility companies that have to provide access to the power lines and gas pipes that they own.
As more states abandon the energy market regulations of the 20th century, new legislation across more than a dozen states makes it possible to shop around and compare various options in pricing structures, contracts and plans, efficiency solutions, and customer service that may be better suited to your unique circumstances and needs.
Where are these deregulated energy markets?
When power companies were first established, fierce competition existed among those fighting to deliver electricity and gas to eager consumers. The government intervened to create state-regulated monopoly systems to control the energy supply chain — from generation to distribution — that operated until the 1990s.
With the Energy Policy Act of 1992, private generators and energy retailers gained legal rights in purchasing and selling energy sources directly to consumers. Each state has its own deregulation history and status per commodity.
Electric and gas
- New Hampshire
- New Jersey
- New York
- Rhode Island
- Washington, D.C.
- New Mexico
- South Dakota
- West Virginia
Lower your energy bills with Price Alerts
The competition that exists between supply providers in these deregulated energy markets can reduce overall electric costs for consumers. However, navigating that competition can be extraordinarily difficult, and fraught with difficult contracts and poor terms. Arcadia Power created our Price Alerts program as a new way to navigate the competitive electric supply market.
Our team and platform monitors supply rates for our users in deregulated states, so you don’t have to. When a supply rate that’s cheaper than your standard utility becomes available, we alert you to the switch. We also ensure there are no contracts, additional charges, or cancelation fees.
As a consumer, we know you may not have the time — or interest — in reviewing contracts, reading the fine print, and tracking rate fluctuations, so our Price Alerts program connects you to lower energy rates when we find them. All you have to do is sign up for the program and connect your existing utility account to it. It’s completely free to do.