Energy Deregulation

The Energy Policy Act (102nd Congress H.R.776.ENR, abbreviated as EPACT92) is a United States government act. It was passed by Congress and addressed energy efficiency, energy conservation and energy management.  Provisions of this legislation provided for energy deregulation in the power industry, claiming the Public Utilities were a monopoly. This was really true as all residential and commercial energy consumers had no choice in where they purchased electricity and gas from. Individual states began this process in the mid 90’s.

Presently, in more half the country, we have a choice of where we can purchase our electricity and/or gas. There are many energy producers which are licensed to sell their product in each of the deregulated states. This provides both an opportunity to find less expensive gas and electric rates as well as participate in this the energy business.

Energy deregulation map

Now just to clear up any potential misunderstanding, the utility companies that deliver our gas and electricity will not change. They actually do and probably always will have a monopoly. But these utility companies just are not the producers of gas and electricity. In fact, many state regulations have forced utility companies to divest any energy production facilities that they may have had.

Utility customers that have not switched to a new gas and/or electricity provider are in essence allowing the utility company to act as a middle man because the utility company is sourcing and reselling these commodities. What makes this worse is the fact that the rates typically fluctuate throughout each day according to the spot market. We get billed for an average rate for the month. This is the most expensive way to source these basic commodities.

The energy industry in the United States alone is about a $700 billion dollar industry. As deregulation takes effect throughout the country, it’s no surprise that Warren Buffet was quoted in Forbes Magazine: “Energy deregulation will be that largest transfer of wealth in history.”

Also from Forbes Magazine three years ago:

Electric Deregulation Finally Takes Off

Now, finally, two big factors are getting electricity customers to shop around for power. After years of steady price increases, electricity prices have been bouncing around and generally falling, and technology once only available to big industrial customers is trickling down to smaller users. In the mid-Atlantic electricity service area prices fell 45% in 2009, and in the New York service area the price was the lowest in the ten-year history of the market, 49% below 2008 levels. Read the entire article

As the state of Pennsylvania has just deregulated on Jan 1, 2013, this is what Fox News had to say about it:

As outlined in that report, energy deregulation presents a great opportunity for businesses and non-profits to cut their energy expenses. Pennsylvania is just the most recent state to deregulate energy and each state does have it’s own legislation and regulation. An experienced energy consultant can assist you in your state.

Timing does play a role in locking-in the best rates possible. Read Electricity Price Trend and Gas Price Watch to learn more. The best energy brokers can do all the work for you while obtaining the best electricity and gas rates possible.

“>Bottom line: If your business or non-profit organization has not switched energy providers yet, you are throwing away money. You need to contact us today for a no cost, no obligation rate analysis.

The process of switching providers is greatly simplified when your business takes advantage of a large nationwide energy broker. The learn about this process, click here.


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