Energy Deregulation

In many states, electric generation service has been separated from the power delivery services that the local utility provides. Instead of paying the utility a single rate for all services, separate prices have been established for each major component of service: "generation", "transmission" and "distribution".
  • The generation portion of electric service is now offered in the competitive marketplace. Customers can buy generation from a licensed supplier rather than their traditional utility.
  • The utility will continue to deliver power over the same electricity transmission and distribution lines that are used today. The delivery portions of electric service are still provided by the utility at rates regulated by state agencies.

Deregulation Terms

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