Most power companies were established many years ago in a business framework that gave them a monopoly in their service territory, guaranteed them a comfortable profit, subjected them to complete regulation by a state or federal commission, and required them to deliver a very high level of service. It s hard to appreciate the high level of service provided by America s utility companies unless you have traveled overseas. For example, most hotel rooms in Asia, Africa, and South America have candles and matches in anticipation of extended power outages. In many places they happen every day. The whole business framework for the U.S. electric industry is changing due to deregulation.
Deregulation breaks the monopoly and encourages competition.
In theory rates should go down and choices should go up. But, homeowners should be aware that large industrial electricity users are the prime beneficiaries of cost reductions. In most states you will soon be able to choose your electricity supplier. Some consumers, in California and Pennsylvania for example, have that freedom already. Deregulation will allow you to choose your electricity supplier based on price, environmental record, or other factors important to you.