What is Energy Choice?
What is Energy Choice?
Energy Choice is a capability that some U.S. consumers have which allows them to shop for the best electricity rates. Learn about energy choice and laws that enable customers to choose.
Introducing Suppliers
By default, your utility sets the supply charge (the price you pay for energy) based on market conditions. If you participate in Energy Choice, your supply rate is based on your negotiated agreement with your chosen REP or Supplier.
How Does Energy Choice Work?
In regions with deregulated markets, energy providers have the flexibility to offer a wider array of service and rate options. This resembles the manner in which consumers choose their long-distance phone carrier; deregulation separates energy production from distribution, granting customers the choice of where they purchase their power.
The local utility company still handles power distribution, just as it did in the past and continues to do today.
From the customer’s perspective, nothing changes. There's no disruption of services or need for new equipment installation, and the customer's current utility provider still manages their service and bills their account. In some instances, the consumer might receive a separate bill from the energy provider instead of one from their utility company, but overall expenses are lower for customers who utilize Energy Choice.
In deregulated states, customers have the option to explore different suppliers of natural gas or electricity from retail energy providers and select a supplier whose rates are most appealing to them. If consumers don't take the time to research available rates from suppliers, they receive their energy supply directly from their utility but miss out on potential savings.
What is Energy Deregulation?
Deregulation, also known as restructuring, emerged as a response to the lack of competition among energy providers, resulting in higher costs for consumers. Initiated with the Energy Policy Act of 1992, deregulation encompasses federal policies aimed at easing restrictions on local electricity markets. Subsequently, nearly half of the states in the U.S. responded by taking steps towards deregulation.
In areas with energy deregulation, utilities remain regulated by the Public Utilities Commission to ensure customers receive safe, affordable, and reliable access to utility services.
Does Everyone Have Access to Energy Choice?
Energy Choice is a product of energy deregulation, and only consumers in deregulated states have the opportunity to shop for electricity rates and select their provider.
Before energy deregulation, local energy utilities managed all aspects of generation, transmission, and distribution in the United States. While this provided stability to the energy infrastructure during the initial implementation of electricity and gas services in America, it also created a monopoly within the industry. These monopolies, often referred to as "regional monopolies," allowed local utilities to set rates as they pleased.
The breakup of monopolies in various industries throughout the last century, alongside antitrust legislation, paved the way for energy deregulation, altering the landscape.
What States is Energy Choice Available In?
As of 2020, deregulated markets include Pennsylvania, Texas, Illinois, Michigan, Ohio, Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Maryland, Oregon, and Washington, D.C.
In states that underwent deregulation, utilities were required to divest their means of producing natural gas or electricity while retaining the ability to profit from its distribution and transmission. This paved the way for retail energy providers to cater to the utilities’ customers.
Several states offer electricity shopping platforms operated by the local public utilities commission, such as Power to Choose in Texas and PA Power Switch in Pennsylvania. These platforms often feature numerous electricity providers and plans, which can be overwhelming. As an alternative, ChoosyPower.com collaborates with reputable providers, simplifying rate comparison in our Marketplace.
Benefits of Energy Deregulation
With the establishment of energy deregulation, more providers have entered markets in various states, fostering increased competition and better choices for energy consumers. Residents and businesses in deregulated states now have greater flexibility in comparing prices and electricity contract details.
While proponents of deregulation argue that competition drives down prices, critics contend that the reduction in prices is not significant enough to warrant deregulation. However, critics overlook the impact of customers who have not participated in Energy Choice and continue to pay high prices to their utility.
Since deregulation, as more customers engage in Energy Choice, prices are driven down as retail energy providers actively compete for customers.
Additional Energy Choice Resources
We've curated a glossary of common energy terms and addressed frequently asked questions about Energy Choice to assist you in understanding your options and finding the best energy rates for your needs!
How do I Participate in Energy Choice?
Participating is simple! ChoosyPower.com partners with top, reputable energy providers to offer the best electricity rates through our secure and user-friendly Rate Comparison Tool below. Simply enter your ZIP Code to compare rates in your area. Switching is free and takes only a few minutes.
How Does Energy Choice Work?
In regions with deregulated markets, energy providers have the flexibility to offer a wider array of service and rate options. This resembles the manner in which consumers choose their long-distance phone carrier; deregulation separates energy production from distribution, granting customers the choice of where they purchase their power.
The local utility company still handles power distribution, just as it did in the past and continues to do today.
From the customer’s perspective, nothing changes. There's no disruption of services or need for new equipment installation, and the customer's current utility provider still manages their service and bills their account. In some instances, the consumer might receive a separate bill from the energy provider instead of one from their utility company, but overall expenses are lower for customers who utilize Energy Choice.
In deregulated states, customers have the option to explore different suppliers of natural gas or electricity from retail energy providers and select a supplier whose rates are most appealing to them. If consumers don't take the time to research available rates from suppliers, they receive their energy supply directly from their utility but miss out on potential savings.
What is Energy Deregulation?
Deregulation, also known as restructuring, emerged as a response to the lack of competition among energy providers, resulting in higher costs for consumers. Initiated with the Energy Policy Act of 1992, deregulation encompasses federal policies aimed at easing restrictions on local electricity markets. Subsequently, nearly half of the states in the U.S. responded by taking steps towards deregulation.
In areas with energy deregulation, utilities remain regulated by the Public Utilities Commission to ensure customers receive safe, affordable, and reliable access to utility services.
Does Everyone Have Access to Energy Choice?
Energy Choice is a product of energy deregulation, and only consumers in deregulated states have the opportunity to shop for electricity rates and select their provider.
Before energy deregulation, local energy utilities managed all aspects of generation, transmission, and distribution in the United States. While this provided stability to the energy infrastructure during the initial implementation of electricity and gas services in America, it also created a monopoly within the industry. These monopolies, often referred to as "regional monopolies," allowed local utilities to set rates as they pleased.
The breakup of monopolies in various industries throughout the last century, alongside antitrust legislation, paved the way for energy deregulation, altering the landscape.
What States is Energy Choice Available In?
As of 2020, deregulated markets include Pennsylvania, Texas, Illinois, Michigan, Ohio, Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Maryland, Oregon, and Washington, D.C.
In states that underwent deregulation, utilities were required to divest their means of producing natural gas or electricity while retaining the ability to profit from its distribution and transmission. This paved the way for retail energy providers to cater to the utilities’ customers.
Several states offer electricity shopping platforms operated by the local public utilities commission, such as Power to Choose in Texas and PA Power Switch in Pennsylvania. These platforms often feature numerous electricity providers and plans, which can be overwhelming. As an alternative, ChoosyPower.com collaborates with reputable providers, simplifying rate comparison in our Marketplace.
Benefits of Energy Deregulation
With the establishment of energy deregulation, more providers have entered markets in various states, fostering increased competition and better choices for energy consumers. Residents and businesses in deregulated states now have greater flexibility in comparing prices and electricity contract details.
While proponents of deregulation argue that competition drives down prices, critics contend that the reduction in prices is not significant enough to warrant deregulation. However, critics overlook the impact of customers who have not participated in Energy Choice and continue to pay high prices to their utility.
Since deregulation, as more customers engage in Energy Choice, prices are driven down as retail energy providers actively compete for customers.
Additional Energy Choice Resources
We've curated a glossary of common energy terms and addressed frequently asked questions about Energy Choice to assist you in understanding your options and finding the best energy rates for your needs!
How do I Participate in Energy Choice?
Participating is simple! ChoosyPower.com partners with top, reputable energy providers to offer the best electricity rates through our secure and user-friendly Rate Comparison Tool below. Simply enter your ZIP Code to compare rates in your area. Switching is free and takes only a few minutes.
How Does Energy Choice Work?
In regions with deregulated markets, energy providers have the flexibility to offer a wider array of service and rate options. This resembles the manner in which consumers choose their long-distance phone carrier; deregulation separates energy production from distribution, granting customers the choice of where they purchase their power.
The local utility company still handles power distribution, just as it did in the past and continues to do today.
From the customer’s perspective, nothing changes. There's no disruption of services or need for new equipment installation, and the customer's current utility provider still manages their service and bills their account. In some instances, the consumer might receive a separate bill from the energy provider instead of one from their utility company, but overall expenses are lower for customers who utilize Energy Choice.
In deregulated states, customers have the option to explore different suppliers of natural gas or electricity from retail energy providers and select a supplier whose rates are most appealing to them. If consumers don't take the time to research available rates from suppliers, they receive their energy supply directly from their utility but miss out on potential savings.
What is Energy Deregulation?
Deregulation, also known as restructuring, emerged as a response to the lack of competition among energy providers, resulting in higher costs for consumers. Initiated with the Energy Policy Act of 1992, deregulation encompasses federal policies aimed at easing restrictions on local electricity markets. Subsequently, nearly half of the states in the U.S. responded by taking steps towards deregulation.
In areas with energy deregulation, utilities remain regulated by the Public Utilities Commission to ensure customers receive safe, affordable, and reliable access to utility services.
Does Everyone Have Access to Energy Choice?
Energy Choice is a product of energy deregulation, and only consumers in deregulated states have the opportunity to shop for electricity rates and select their provider.
Before energy deregulation, local energy utilities managed all aspects of generation, transmission, and distribution in the United States. While this provided stability to the energy infrastructure during the initial implementation of electricity and gas services in America, it also created a monopoly within the industry. These monopolies, often referred to as "regional monopolies," allowed local utilities to set rates as they pleased.
The breakup of monopolies in various industries throughout the last century, alongside antitrust legislation, paved the way for energy deregulation, altering the landscape.
What States is Energy Choice Available In?
As of 2020, deregulated markets include Pennsylvania, Texas, Illinois, Michigan, Ohio, Maine, New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, Maryland, Oregon, and Washington, D.C.
In states that underwent deregulation, utilities were required to divest their means of producing natural gas or electricity while retaining the ability to profit from its distribution and transmission. This paved the way for retail energy providers to cater to the utilities’ customers.
Several states offer electricity shopping platforms operated by the local public utilities commission, such as Power to Choose in Texas and PA Power Switch in Pennsylvania. These platforms often feature numerous electricity providers and plans, which can be overwhelming. As an alternative, ChoosyPower.com collaborates with reputable providers, simplifying rate comparison in our Marketplace.
Benefits of Energy Deregulation
With the establishment of energy deregulation, more providers have entered markets in various states, fostering increased competition and better choices for energy consumers. Residents and businesses in deregulated states now have greater flexibility in comparing prices and electricity contract details.
While proponents of deregulation argue that competition drives down prices, critics contend that the reduction in prices is not significant enough to warrant deregulation. However, critics overlook the impact of customers who have not participated in Energy Choice and continue to pay high prices to their utility.
Since deregulation, as more customers engage in Energy Choice, prices are driven down as retail energy providers actively compete for customers.
Additional Energy Choice Resources
We've curated a glossary of common energy terms and addressed frequently asked questions about Energy Choice to assist you in understanding your options and finding the best energy rates for your needs!
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Common Questions & Energy Terms
Common Questions & Energy Terms
Everything you need to know about the products, plans and more.
Demand
Deregulation
Distribution and Transmission
Energy Choice
Electric Supply
Energy Source
Energy Supply
Fixed Rate
Generation
Infrastructure
Kilowatt (kW)
Kilowatt-hour (kWh)
Megawatt (MW)
Megawatt-hour (MWh)
On-Peak & Off-Peak Demand
Price-to-Compare (P2C)
Retail Electricity Provider (REP)
Renewable Electricity
Shopping Around
Traditional Electricity
Utility
Variable Rate
Watt (W
Residential: What factors should I take into account when selecting an energy plan?
Residential: Will there be charges for terminating my current energy provider?
Solar: How does net metering work, and what potential impact could it have on my solar installation?
Community Solar: Can renters or businesses sign up for Community Solar savings plans?
Community Solar: Why should I use Choosy Power to enroll in community solar?
Commercial: What happens upon contract completion?
Commercial: What charges are included in the rate?
Demand
Deregulation
Distribution and Transmission
Energy Choice
Electric Supply
Energy Source
Energy Supply
Fixed Rate
Generation
Infrastructure
Kilowatt (kW)
Kilowatt-hour (kWh)
Megawatt (MW)
Megawatt-hour (MWh)
On-Peak & Off-Peak Demand
Price-to-Compare (P2C)
Retail Electricity Provider (REP)
Renewable Electricity
Shopping Around
Traditional Electricity
Utility
Variable Rate
Watt (W
Residential: What factors should I take into account when selecting an energy plan?
Residential: Will there be charges for terminating my current energy provider?
Solar: How does net metering work, and what potential impact could it have on my solar installation?
Community Solar: Can renters or businesses sign up for Community Solar savings plans?
Community Solar: Why should I use Choosy Power to enroll in community solar?
Commercial: What happens upon contract completion?
Commercial: What charges are included in the rate?
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