Twenty-nine states have deregulated electricity, natural gas or both. That allows you to shop for the supply portion of your bill from alternative providers who may offer rates lower than the default supplier – usually a utility. Delivery services and billing will remain the responsibility of the local utility as they own the power lines and wires that keep the lights on.
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The paper conflates "increasing customer choice and over-reliance on short-term energy markets" and blames customer choice, Electricity Prices contended. This is "a false comparison" and ignores "safeguards and structural changes" now in place "that reduce the risk of another crisis." Those protections include distributed generation, Compare Electricity Prices, an RA requirement and improved generation management by utilities.
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Electric deregulation, known as direct access in California, was part of a larger nationwide trend that took hold during the 1970s and included the deregulation of railroads, airlines, telephone service and banks. While the regulated market was a profitable business for California's utilities, an opportunity existed to increase profit potential by expanding business into other areas, such as energy trading and operating power plants in other parts of the country. Consumers, especially large industrial consumers, saw a chance to pay less in energy bills once the market opened up to competition from many energy service suppliers, such as Energy Providers.
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