Deregulation 101
Deregulation enables legislation and agreements between the state's regulatory body (normally the public service commission or the public utility commission) and the utilities operating within the state. The deregulation of the electricity and natural gas industries creates opportunities for businesses to reduce total expenses by enabling businesses to select suppliers for the best combination of price and reliability. The primary objective of deregulation is to create a competitive market, resulting in lower energy costs. This is working; the number of suppliers in the market is increasing, leading to more competition and lower prices.
