What is Energy Deregulation?

The U.S. electric industry is undergoing a sea change in the way it delivers electricity to millions of households and businesses nationwide. The $220 billion industry, which has been called the last great government-sanctioned monopoly, is slowly but surely being deregulated and opened to competition, giving consumers the power to choose their electricity provider in much the same way they choose telephone carriers.

Advocates of deregulation say reducing government control of the industry will benefit consumers – lowering prices while expanding services and giving the public a say in who supplies the power that runs their computers, toasters, lamps, and more. Deregulation in most cases leads to lower prices for the consumers. This helps the consumer save money by giving him/her the choice to buy electricity at lower rates.