Deregulation Education



Deregulation of U.S. energy markets originated from distribution and transmission that could not be regulated by one states public utility commission and favoritism amongst large utility companies. The basis for deregulating U.S. electricity and natural gas was created through a series of acts by Congress and various Federal agencies over the past century. The general goal of this deregulation process has been to separate distribution and transmission from supply.

The deregulation of the electricity and nature gas markets provides customers with the choice to purchase the commodity from a supplier other than the local utility or local distribution company. Electricity and natural gas are purchased from generators and suppliers and distributed or transmitted through the supply network by the Electricity Service Provider or Core Transport Agent. Electricity is transmitted to commercial and residential customers by way of an electricity grid referred to as an independent System Operator or Regional Transmission Operator. Natural gas is supplied to commercial and residential customers by way of a pipeline to a citygate and then directly to customers.