Deregulated Energy States.
Since electricity and natural gas started to deregulate in the 1990s, there have been many states to follow suit. In fact, today there are over 20 U.S. states that have some sort of energy deregulation policy enacted. As a national energy brokerage company, we offer commercial natural gas and electricity solutions in all deregulated states. Below is a map of where we offer services as well as a list of utilities in each state.
Just because a state is deregulated does not mean that all of its energy utilities are too. In fact, there are many states that have deregulated electricity, but do not have deregulated natural gas, and vice versa. There are also many key differences between electric deregulation and natural gas deregulation. On this page, we will explore:
- Deregulated Energy States
- Differences Between Electric and Natural Gas Deregulation
- What Energy Deregulation Means For Energy Brokers
- What It Means To Be A Customer In A Deregulated State
First, let’s discuss electricity deregulation. Power deregulation first came about in the 1990s and quickly swept the United States (see history of energy deregulation). Today, there are over 15 states participating in active electricity deregulation. But what does it mean to deregulate the electricity industry? Let’s explore this in more detail.
In a regulated state, and in all states prior to electricity deregulation, power generation plants are owned by utility monopoly companies. In fact, these utility companies are solely responsible for building and maintaining power plants and electricity generation facilities. In a deregulated state, however, the utility companies are no longer allowed by law to own electricity generating assets. In an effort to break up the stronghold utilities had on the electric supply chain, states required that these companies sell off their power plants and focus on delivering electricity to their customers.
Furthermore, electric utilities in deregulated states are not allowed to own the high-powered electric transmission lines that take power from the power plants to the local sub-stations. In deregulated states, these transmission lines are maintained and operated by independent grid operators that also control the wholesale electricity markets.
Electricity Supply & Delivery
In a deregulated state, most electric utilities are solely responsible for the local delivery of electricity over their locally-owned electric lines. Electric utilities in these states are also responsible for billing customers and collecting payments. In some deregulated states, utilities can even sell electricity directly to consumers at a pre-determined default price. These consumers can also shop for that same electricity from a supplier (more to come on that later).
Deregulated Natural Gas
Natural gas deregulation, similar to electricity, began in the 1990s with the invention of the wholesale trading natural gas markets. Since then, many states have followed suit and deregulated their natural gas utilities. Unlike electricity, natural gas has a different supply chain that operates in its own unique way in a deregulated state.
Natural Gas Production
Unlike electricity, where utility companies generate power in regulated states, in all states natural gas production is done by the same companies. Since natural gas can be stored and transported across many states quite easily, the production part of the supply chain is not controlled by utility monopolies. On the other hand, large energy companies like Exxon, BP and Shell are involved in the drilling and production of natural gas.
Natural Gas Pipelines And Transport
Unlike the electric markets where transmission lines used to be controlled by utility monopolies in each state, natural gas pipelines run across the country and are often interstate operations. Due to their nature, these pipelines are often owned and operated by independent companies, even when they are located in regulated states that are not participating in natural gas deregulation.
Natural Gas Delivery and Supply
The main difference between a regulated gas state and a deregulated one, is the local delivery and sale of the natural gas. In a regulated state, natural gas utilities own the local gas lines, deliver gas, and sell gas to customers. In a deregulated gas state, utilities are mostly involved in the delivery of gas over local gas lines. Gas suppliers in these states can sell natural gas to utility company customers that is then delivered by the utility company.
List Of All Deregulated Energy States
Today, there are over twenty U.S. states participating in some sort of energy deregulation. In each state, there are certain laws centered around electricity and natural gas deregulation, who can participate, and how the market operates. Below is a map of where we offer services as well as a list of utilities in each state.
List of Deregulated Utilities by State.
Pacific Gas & Electric (NG)
San Diego Gas & Electric (NG)
Southern California Gas Company (NG)
Southern California Edison (NG)
Eversource CT (E)
Connecticut Natural Gas (NG)
United Illuminating (E)
Southern Connecticut Gas (NG)
Chesapeake Utilities Corp (NG)
Delmarva Power (E)
Delaware Electric Cooperative (E)
Central Florida Gas (NG)
Florida City Gas (NG)
Florida Public Utilities (NG)
TECO / Peoples Gas (NG)
Atlanta Gas Light Company (NG)
NICOR Gas (NG)
Northshore Gas (NG)
Peoples Gas (NG)
Northern Indiana Public
Service Company (NIPSCO) (NG)
Columbia Gas of Kentucky (NG)
Duke Energy (NG)
Central Maine Power Co. (E/NG)
Emera Maine (E)
Baltimore Gas and Electric (E & NG)
Potomac Edison (E)
Southern Maryland Electric Cooperative (E)
Washington Gas (NG)
National Grid (E)
Eversouce (NStar) (E)
Western Massachusetts Electric Co. (E)
Consumers Energy (E & NG)
DTE Energy (E & NG)
Michigan Gas Utilities (NG)
Black Hills Energy (NG)
NorthWestern Energy (NG)
Nebraska Resources Co. (NG)
Nevada Energy (NG)
Southwest Gas (NG)
Eversource NH (E)
Liberty Utilities (E & NG)
Unitil (E & NG)
Atlantic City Electric (E)
Elizabethtown Gas (NG)
Jersey Central Power and Light (E)
New Jersey Natural Gas (NG)
Public Service Electric and Gas
Company (E & NG)
Rockland Electric (E)
South Jersey Gas (NG)
New Mexico Gas Company (NG)
Central Hudson (E & NG)
Con Edison (E & NG)
National Fuel Gas (NG)
National Grid (E & NG)
NYSEG (E & NG)
Orange and Rockland (E & NG)
PSEG Long Island (NG)
Rochester Gas and Electric (E & NG)
AEP Ohio (E)
The Illuminating Company (CEI) (E)
Columbia Gas of Ohio (NG)
Dayton Power and Light (E)
Dominion East Ohio (NG)
Duke Energy (E & NG)
Ohio Edison (E)
Toledo Edison (E)
Vectren Energy Delivery of Ohio (NG)
Columbia Gas (NG)
Duquesne Light (E)
National Fuel Gas (NG)
PECO (E & NG)
Penn Power (E)
People’s Natural Gas (NG)
Potomac Edison (E)
PPL Electric Utility Corporation (E)
West Penn Power (E)
AEP Texas Central (TCC) / Central Power
and Light (E)
AEP Texas North (TNC) / West Texas
Utilities (WTU) (E)
Atmos Energy (NG)
CenterPoint Energy (E & NG)
Oncor (TXU Electric Delivery) (E)
Texas New Mexico Power Co. (TNMP) (E)
Washington Gas & Light (G)
Columbia Gas of Virginia (G)
What Does Energy Deregulation Mean For Brokers?
If you’re an energy broker selling electricity or natural gas in a deregulated state, then legislation about deregulation is the foundation of your career – especially if you hold an energy broker license. Without energy deregulation, there would not be a market for energy brokers or energy suppliers. Utility companies would still hold a monopoly on the market and you would not have the opportunity to resell energy to your customers.
Deregulation can have its downsides and upsides too for energy brokers. There is a long-time debate on whether energy deregulation is good or bad. In fact, since the passing of energy deregulation in the United States, there have been many changes to law and other regulations that have had an impact on the careers of energy brokers. California, for example, used to be a state with 100% energy deregulation. After many complications in its electricity markets, state legislators decided to suspend deregulation. Today, only certain electricity customers in California have the opportunity to shop for a supplier.
As an energy broker, it is important to keep an eye on the new laws, orders, and proposals related to electricity and natural gas deregulation. As PUC Commissioners and state politicians change, there could be new initiatives to curtail deregulation in existing states or promote deregulation in new states. Arizona, for example, is a regulated state that has been discussing full electricity deregulation for many years. If Arizona decides to deregulate its power utilities, then this could create new opportunities for energy brokers.
What Does It Mean To Be A Customer In A Deregulated Energy State?
If you are a customer living in a deregulated state, then there are many opportunities and advantages to hiring an energy broker. In fact, customers in deregulated energy states have the option to purchase their electricity and/or natural gas supply from a third-party provider. Here are some of the advantages of shopping on the open market for your energy supply:
In a deregulated state, you have the opportunity to lock-in long term energy supply contracts when market prices are in your favor. Unlike customers in regulated states who are at the mercy of the market, customers in deregulated states have more control over their budgets and future costs. This especially applies to commercial customers that set financial budgets each year for their organizations or businesses.
Many customers are looking for ways to support green energy and the environment, but do not want to go through the hassle of having to install solar panels. In deregulated states, many energy suppliers offer 100% green energy plans that support the production of renewable energy. Signing up for one of these plans is simple and allows you to do your part.
Last and certainly not least is savings! Most customers in deregulated energy states get excited about the opportunity to save money! When you are with the local utility company on their default rate, it changes monthly, quarterly, or semi-annually with the ebbs of flows of the market. If you are in a deregulated state, you can sign up for a rate with a supplier that is lower than your local utility rate and save some real cash each month!
Find A Supplier In A Deregulated State
Are you ready to learn more about energy deregulation and what it might mean for you? Our team of energy experts is waiting for you to contact us so we can discuss your options. We work with the nation’s leading energy suppliers that offer the lowest fixed-rates in the market. Contact us today to find a supplier that can work for you.