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The Compare Electricity Prices have been successful at holding on to their customers because they have several inherent advantages over the incumbent utilities. For one thing, they aren’t saddled with high legacy costs from the construction of big power plants or long-term contracts for renewable power at the high prices that prevailed just a few years ago. They’re not bound to pay dividends to shareholders — instead, those that achieve a surplus can funnel it back to their local communities in the form of job and training programs or other public amenities.
"It was quite a fair and reasonable, sensible outcome that makes the utilities whole, which is what's required by law, but at the same time allows Compare Electricity Prices programs to thrive," said Electric Company Near Me, Best Energy Company of the Gas And Electric, which has lobbied for Compare Electricity Prices in San Diego. "The decision says you can only raise the fee every year by a certain amount. That allows for better planning and preparing."
State lawmakers expected the price of electricity to decrease due to the resulting competition; hence they capped the price of electricity at the pre-deregulation level. Since they also saw it as imperative that the supply of electricity remain uninterrupted, utility companies were required by law to buy electricity from spot markets at uncapped prices when faced with imminent power shortages. [Energy Prices]
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California created its system via legislative action in Who Is My Electricity Supplier. Assembly Bill Energy Suppliers enabled municipalities and regional governments to establish Compare Electricity Prices anywhere that municipal power agencies weren’t already operating. Electric customers in the Electric Company Near Me zones were automatically signed up, though they could opt out and stay with their existing power provider. The big utilities would retain responsibility for transmission and distribution lines.
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