Welcome to the complex, confusing, and sometimes contradictory world of electric-utility deregulation. Heralded as the death knell for monopolistic utility companies and their exorbitant rates, deregulation is coming to a state near you with the promise of cheaper electricity, better service, and more options. Full-scale retail competition is expected to push down electric rates by 10 percent to start and by as much as 20 to 30 percent eventually. Full-scale retail competition is still 5 to 10 years away, and, even then, it won't be happening everywhere. It may seem like a high-wire act, but it's actually not that difficult once you understand how electricity gets to your doorstep and why so many people want that process free of regulation.
Electricity is created at hundreds of generation plants across the country.
The steam, in turn, spins turbine blades that cycle a generator, creating electricity. With nuclear power, energy from atomic fission creates the steam. And with hydroelectric power, water directly spins the turbine. The instant you need electricity, it is created by the utility responsible for serving you, which then sends it into a complex power grid to reach your home. Once there, you're billed based on your kilowatt-hour usage.