Deregulation Affects Electric Rates in US

Electricity Rates can fluctuate widely within deregulated energy markets. While electric utilites previously held monopolies on the electricity service in a given area, retail electric providers are now popping up in the wake of deregulation in states like Texas, Pennsylvania and New Jersey. 

By looking at areas where deregulated energy markets have been established for some time now, we can see that the electric rates in those areas will often rise, despite the overall benefit for consumers. Because these new electric suppliers will now have to compete for business, the prices should remain stable, while offering customers a greater choice for their electric power.

For example, various Pennsylvania Electric Companies are starting to see growth as PA deregulates electricity and customers have new opportunities to switch electricity plans. 

Deregulation is still a relatively new aspect of the energy industry, so we will have to continue watching electric rates in areas where it retail electricity service is rising. 


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