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According to the Merriam-Webster Dictionary, Deregulation Is The Act Or Process Of Removing Rules or Regulations.
Electricity deregulation has opened up the marketplace in a number of states and has enabled consumers to choose from multiple electricity providers who now compete for their business. In areas where the electricity marketplace is still regulated, consumers have only one option when it comes to choosing an electricity provider (the incumbent).
The point of deregulation is ultimately to reduce prices and by introducing competition and choice into the market.
Deregulation: Here is what it means to you.
The company that maintains the wires that come to your home or business, delivers the electricity to your home, reads your meter, sends you a bill, repairs the wires after a storm, and the company that you call for customer service if you have any kind of problem is called your incumbent electricity company.
Regardless of where you live, your incumbent electricity company will probably NOT change.
The only thing that may change (if you so choose) is your choice of the company that actually produces the electricity that your incumbent electricity company delivers to your home or business.
Numerous electricity providers maintain generating facilities (coal, natural gas, nuclear, wind, solar, hydroelectric) that produce the electricity which is then delivered to "the grid".
Deregulation Simply Means That You Can Choose The Specific Electricity Generating and Supply Company From Which You Purchase Your Electricity.
Maybe you prefer solar, wind or some other alternative energy for its "green" nature.
Maybe you simply want the lowest price. Maybe you own stock in a certain company so you want to also be their customer. Whatever reason you may have, in states that have deregulated their electricity marketplace, you are now permitted to choose the company that produces the electricity that your incumbent electricity delivers to you.
There Are Three Basic Steps in getting the consumer electricity:
- Generation
- Transmission
- Distribution
The generation of electricity is accomplished by providers that have some sort of power generating means, whether that is nuclear, coal, fossil fuels, wind, solar or various other types. When a provider generates power and places that power into the federal/state grid, they have a right to sell that power to any consumer willing to pay their price.
Transmission of electricity is the act of sending that power at high voltages to various distribution points for use. These are the high voltage lines most people associate with the big towers that cut through landscapes around the country.
Finally, distribution is the act of delivering that power to the end user or consumer. This is usually the company that most people think of as their "electric company." It is also known as the "incumbent."
So, we have the generators of power, the transmitters of power and the suppliers of power.
Consumers Now Have Choices
Seemingly overnight, consumers in deregulated states have gone from having no choice at all, to having an abundance of choices. Each state has different companies to choose from. Each company has different rates for different size customers. Just like mortgage companies, each electricity company usually offers fixed rate or variable rate plans, and customers should know the advantages and risks that are inherent with each type of payment plan.
Deregulated Electricity in a number of states across America has caused a lot of confusion and a lot of opportunity to both save money and to make money
Numerous companies and thousands of sales people are knocking on doors, calling on the phone, emailing people, advertising on TV and radio as well as in newspapers, magazines and, seemingly, everywhere else. They all promise savings. They all say that they are better than their competitors. They all say that you should buy your electricity from them, rather than from their competition. It can be confusing. We Will Help You To Sort Through All Of This Information And Make An Informed Decision. Click Read More:Next Page Deregulated Electricity - Now Is The Time To Take Advantage Of It By Wayne Knapcik deregulatedelectricitynow.com Contact: Michele Lorrayne/ Consumer Electricity Consultant  |
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