Powering a Generation of Change , from the Smithsonian Institution , provides background information on the restructuring of the electric industry. U.S. Department of Energy . Fuels rush in. Amway's new mission is part of a nationwide change in the marketing and delivery of gas and electricity. Deregulation is spreading from state to state, giving residential customers an unaccustomed chance to shop around for energy.
Suppliers send out brochures or even go door to door.
The utility still delivers the gas or electricity and provides maintenance, but an outside supplier provides the energy to the utility on your behalf. The theory is that consumers will win lower prices from competing suppliers if the purchase of energy is separated from its delivery. Even before deregulation, gas utilities often passed on the cost of gas they bought elsewhere. The shift to new suppliers is more drastic for electric utilities since they typically generate their own power. Utilities themselves are now also setting up unregulated subsidiaries to compete for sales.