Tuesday, November 5, 2013

Energy Deregulation - Are You Aware Of The Changes?

Energy Deregulation in the U.S. - Are you aware of the effects of Energy Deregulation?

With over 90% of American businesses paying more than necessary for their energy services, Energy Deregulation is a subject that EVERYONE should know about, because it is so direct, simple, and easy to lower their energy bills.

Most people do not know the details of the history of the Natural Gas and the Electric industries. Both have experienced the same kind of dramatic changes during the last 60 years which have happened in society, the environment, and technology. Energy Deregulation is the most recent, and most important, change in the Natural Gas and Electric industries.

Regulation of public utilities in the United States by the Federal and State Governments began in the 1930's. It encouraged the construction and safe operation of the transmission networks supporting these industries and resulted in a transcontinental pipeline network and electric grid supporting the entire country. The prices were low, and the industries experienced high growth dealing with the ever-increasing demand.

The advent and growth of the Energy Industries was very similar to other industries in the U.S. in the 19th century. Pioneering leaders encouraged local production to serve their communities. Many business leaders became elected officials, and the market was well-understood by these leaders. The industries grew dramatically when pipelines and power lines were built to deliver the Natural Gas and Electricity to other nearby communities, and, eventually, to other states.

Every time the industries changed, the Federal and State governments addressed the newly-created or altered marketplaces (Local, Intrastate, and Interstate). In order to prevent excessive charges to customers, the governments formed Public Utilities Commissions and Public Service Commissions, beginning with New York and Wisconsin in 1907. These regulatory bodies commissioned studies and consulted with experts to set reasonable rates which could be charged to consumers.

In the 1970's and '80's, the telecommunications, airline, and trucking industries were transformed from monopolies into deregulated, competitive industries with many more companies involved. Due to Energy Deregulation, today's rates for these services are lower than before deregulation, adjusted for inflation.

The deregulation of the electric and natural gas industries ONLY applies to the price of the underlying commodity. Transmission and Distribution are still performed by the local utilities, whose rates for those services are still regulated by Federal and State Tariffs.

When the FERC lifted the regulation of the price of the underlying commodity, the States began to decide how Energy Deregulation could take place, and which cities, towns, and geographical areas would have deregulated commodity prices. Not all areas could be included, because of geographical limitations.

There are currently 27 States with Energy Deregulation. Some have deregulated the price of Natural Gas, others have deregulated the price of electricity, and still others have complete Energy Deregulation of both industries. The local utility still delivers the Natural Gas or Electricity, no matter which marketer is chosen to supply the commodity.

The utility also continues to maintain the distribution system, respond to emergencies and read meters.

Throughout their turbulent histories, the U. S. Natural Gas and Electric industries have been pushed, pulled, and molded into their current forms. Originally intended to guide and control the building of infrastructure in populated areas, regulation had a positive and lasting effect. The companies involved in these industries built the infrastructure to serve the entire nation. They developed the markets throughout the country. They established practices that were reliable and safe, and many Energy Providers prospered.

With the growth of the largest companies into unwieldy conglomerations, monopolistic practices became a very real occurrence. In order to prevent the abuse of that situation, Federal and State regulatory bodies wrote the rules, guidelines, and practices for Energy Suppliers and Utility Companies to abide by. The U.S. Congress passed laws so these rules could be enforced. Both adverse and beneficial effects were experienced by all the businesses and government agencies involved, and,most recently, the changes made by Energy Deregulation have helped consumers and suppliers alike. Consumers are now becoming more educated in regard to the structure of the industry, and now they are taking advantage of the savings opportunities now available to them.

Joe Lowery is a rising star in lowering energy costs for American Business Owners. Having worked for over 30 years in his telecom career with Fortune 500 corporations, Joe is now helping American Business Owners lower their costs of doing business. Joe is on a quest to help business owners get the upper hand in dealing with their energy providers. The cost of natural gas and electricity continue to rise, and Joe's mission is to empower all American business owners by engaging an Energy Broker to negotiate on their behalf, at NO cost to the business owner. The business owner is represented by the broker, who obtains the best possible rates from all the Energy Marketers in the region - due to the Broker's large contracts, the business owner gets rates usually reserved for only the largest corporations. NOW, these rates are available to small and medium sized businesses, because of the representation of the broker.

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