Only a short time ago, energy consumers in New York were forced to accept one level of service and one price, but they now have the freedom to exercise their choice. After New York energy deregulation, consumers were given a choice to seek out the best electricity and gas services at affordable rates out of the many available in the market. Below is a brief history of how New York became deregulated.
History of energy deregulation
Traditionally, electricity in New York was supplied by local monopolies that possessed the power plants as well as the transmission lines for power distribution. In exchange of allowing these corporations to exercise monopoly on the consumers, the state heavily regulated these companies and set up rate of return of profit for the utilities, depending on the cost of service, and planned for upcoming power needs. After deregulation, these monopolies at the state level were broken, and the utilities’ power plants were either sold to a third party or transferred to an unregulated partner of the utility.
New York was a regulated market until 1996, when the New York Public Service Commission began separating the charges for electricity as well as its delivery in the state. By separating electricity and its transmission, consumers were given the power to choose. Thus, customers were able to select an electricity supplier and bring down their electric bills while retaining the same poles and wires.
Since the late 1990s, New Yorkers were also given the opportunity to shop for their natural gas provider. Just like electricity, the New York PSC began ‘unbundling’ the energy bill, by separating charges for the gas supply from the charges for delivering energy to the business set-up or home.
Electricity and natural gas are two basic necessities—often called the lifeblood of society—and are equally important for residential customers and business owners. New Yorkers enjoyed a greater freedom after energy deregulation, it was realized over the years that the state needed to set up newer energy plants, expedite the power generation capacity of existing plants, and explore sources of alternative energy to meet the rising demands. Unless these steps are taken, the benefits of energy deregulation may soon be made ineffective by increased surcharges and taxes, rising bills and depleting reserves.
To ensure long-term, reliable energy supplies for New York, a fair and reasonable path need to be thought of by the government and utility companies.
About Glacial Energy- Glacial Energy is one of the fastest growing national retail energy suppliers selling electricity and natural gas to residential, commercial, industrial, and institutional customers in deregulated markets across the country. Glacial Energy has the resources and market knowledge to provide customized quotes for your business or cost-saving opportunities for your home. Learn more about Glacial Energy by visiting: www.GlacialEnergy.com