Impact of Deregulation
Many states have restructured their electric markets to include both regulated and deregulated components. Simply stated, in a restructured market the regulated utility continues to transport and deliver power to its users. The actual generation of the electricity is now open to competition and users are free to negotiate their own rates and terms to best meet their needs. So, power is still managed and delivered by the local utility, but users are free to procure their power in an open and competitive market.
|Generation||Transmission & Distribution||Electric Users|
Practical benefits for users:
- Continue to work with their regulated utility (distribution company) on all local issues including outages, wire maintenance, load management and rebates & incentives.
- Take control of the largest element of the cost of electricity – generation supply.
- Negotiate rates and terms that best meet their financial and operating requirements.
- Implement financial risk management solutions.
- Leverage the benefits of an open competitive market – pricing, new services, support.