Essentially, deregulated markets open the door for several companies to offer customers their services. It allows Americans the flexibility to choose a supplier that works best for them. This concept works the same way for internet and phone companies, as you can pick whichever one you like the most.
The benefits of energy deregulation haven’t always been available. It wasn’t until the Energy Policy Act passed in 1992 that power suppliers were legally allowed to compete to sell electricity. Before then, Americans were only allowed to choose from a few companies that controlled the market through a monopoly.
Because you may be able to choose your electric provider, you can elect to receive electricity from either an energy supplier or the local utility. Plus, you can enjoy more favorable costs, as companies set their own prices — and to stay competitive, they often reduce their rates. It can also be beneficial for sustainability purposes since you can find suppliers that support energy conservation.