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Electricity Deregulation and You

February 22, 2010

Some of the most important and vital issues that consumers around the world are faced with are issues related to electrical power. Electricity is an integral part of modern society and is a crucial element for the proper function of day-to-day operations whether it is for industrial, commercial, home or personal use. Without electricity, normal operations would be disrupted and society would cease to advance and thrown into a grinding halt.

However, consumers do not have the luxury of receiving cheap electricity from providers in their state as the cost of fossil fuels used to power these electrical plants continue to soar in parallel with the worldwide demand for more energy. This is why there were mixed reactions when the concept of energy deregulation was introduced, with some states like Texas embracing the initiative while others do not. Fears of stellar prices loomed in the horizon as price caps for electrical services are removed while demand continues to increase. In Texas, energy deregulation means the right to choose providers for electricity. Residents can choose which electric companies would provide power to their homes or businesses.

What is Electricity Deregulation?

The concept of energy deregulation was not seen as a possible or viable concept a few decades ago as electrical power distribution for each State was monopolized by suppliers. Residents had no choice but to use the power given to them by the State providers at the prices and circumstances dictated by these companies.
Energy deregulation on the other hand allows residents to choose which power provider they will get their electricity from, such as in the case of Texas where people have the option to select the electricity provider. Choices can depend on energy source, price, rewards, term, etc.

Implementation of energy deregulation and the manner of which it will be rolled out depends on the state, and the legislations each make to put this into effect. While some states readily embraced the idea and have given their residents the Power to Choose their electricity providers, other states have not realized the benefits and have denied their constituents the right to choose.

What are the Benefits of Electricity Deregulation?

The people of Texas have enjoyed the option to choose their electricity providers. Texans now have access to resources and information they need to select electricity companies based on energy costs, energy source, etc. Immediate benefits would be in terms of reduced cost to the consumer as they can select companies based on power rates.

Other benefits that consumers get in their options to choose would be better services from their Texas electric companies due to increased competition and the eradication of monopolies in the power industry. The removal of monopolies also allowed alternative or renewable energy providers to enter the market, providing consumers the option to select green energy for the protection of the environment for their own benefits and for the benefit of generations to come. Lets not forget to mention the thousands of jobs created by electricity deregulation in Texas.

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