Deregulation of the electric utility industry presents consumers with a conundrum 2025

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Deregulation comes with several advantages, such as economic growth, lower prices on goods and services, and a boon to small businesses. However, it also comes with disadvantages, such as lower quality control, the possibility of monopolies forming, and the threat of market failure.
The basic rule of deregulation is that consumers have the right to purchase their electricity service from a Retail Electricity Provider (REP). These providers strive to offer competitive rates, promotions and loyalty plans in an effort to win the business of average consumers.
Energy deregulation restructured the energy market to eliminate the utilitys monopolies, increase competition, lower costs, and improve service. Energy users in states with competitive energy markets have options for rates, terms and specialized product offerings to best fit their needs.
Deregulation allows customers to choose from a range of retail electricity suppliers. Designed to reduce energy prices by introducing competition, deregulation was a major shake-up to a long-established system. Today, utilities in regulated markets only account for a third of the nations electricity demand.
In the National Energy Policy Act of 1992, Congress initiated a steady transition for the nations electricity industry from state regulation of power sales to deregulation and competition for energy supplies.

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In the mid-1990s, under Republican Governor Pete Wilson, California began changing the electricity industry. Democratic State Senator Steve Peace was the Chairman of the Senate Committee on Energy at the time and is often credited as the father of deregulation.

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