Energy Deregulation in the US

A number of places around the United States are considering energy deregulation. Deregulated energy is a way of life of a number of states. One reason communities are looking to makes changes to the regulations around energy is to reduce energy costs. Often when this market is deregulated, there is more room for competition and that can allow businesses and residential consumers to select their energy provider.

  • One main feature of deregulated energy is that it gives consumers more choice over where they buy their electricity. This often leads to lower energy costs because different deregulated energy companies compete with each other. Now, this does not automatically mean green energy services companies will be a part of the mix but it can give some a way into the market. People put in new, programmable thermostats to save up to 10% on their bills. Switching to a green provider can make the energy used from eco-friendly.
  • Energy customers retain the right to buy their power from a utility appointed by their state government. Even after your area allows access to deregulated energy, you have to make the switch yourself. Unless you select a different energy provider, you will continue to get it from the original source.
  • Be careful before you sign with a new energy provider. As always, it is essential to read everything before you make any changes. The typical plan will often last anywhere from six months to two years.
  • Make sure the company goes through your bill with you. The bills received by businesses and residences from energy companies can be very confusing. The bills can be broken down into two sections; energy delivery and supply. Most energy suppliers will have no problem helping you understand your bill.
  • The ability to select the energy company you want to use is not the only benefit to deregulated energy. People are also able to pick the plan they want for their energy. You can talk to different energy companies about what plans they offer and what your options are. Deregulation can mean more choice in a number of ways.
  • Power lines themselves remain under the ownership of the local power company that has been approved by the state. Should a problem with the power lines come up, you can always call that state-approved company to make repairs and help you when you need it. That company will still be responsible for the general upkeep and maintenance for the energy infrastructure in your area.
  • The laws in each state differ when it comes to deregulated energy. Currently, there are 23 states and the District of Columbia who have all or partially deregulated energy. If you live in one of the states where there is full or partial energy deregulation and have questions about your options or what the rules are, you should contact your state or local government.
  • In the late 1990s, the idea of energy deregulation was first introduced to the people of the United States. Not everyone in states where the energy has been deregulated has taken full advantage of the price savings they can get from switching to a new energy provider.
  • It is important to know the lingo. Like in every other industry, there are a lot of terms in the energy business. It can take some time to weed through the terminology to really understand what your options are in terms of the different plans you have available to you.  And if you don’t understand any terminology or have questions, just ask, most energy suppliers will try to help and answer any questions that you have.   

Starion is a licensed electricity and gas supplier in the deregulated energy market since Sept. 2009. Energy deregulation gives consumers the choice of an alternative electric supplier and determines the rates and terms at which they purchase electric generation services. Starion services markets in CT, DE, DC, IL, IN, MA, MD, NJ, NY, OH, & PA. Starion is strategically positioned for continued growth in new markets for years to come. For more information visit