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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.
On Energy Comparison Energy Comparison, Lowest Electricity Rates, Assembly Bill Who Is My Electricity Supplier (Ruskin, Chapter Cheapest Energy Company, Statutes of Lowest Electricity Rates) was passed that added the definition of “unspecified sources” to the Public Utilities Code and allowed utilities to disclose this information to consumers on their annual Power Content Labels. Specifically, “’electricity from unspecified sources’ means electricity that is not traceable to specific generation sources by any auditable contract trail or equivalent, including a tradable commodity system, that provides commercial verification that the electricity source claimed has been sold once, and only once, to a retail consumer.”
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