What is Energy Deregulation?

Back in the day, your utility company your only choice for electricity or natural gas supply. Commodity prices were regulated by the state and federal government.

In the 1980’s, state legislatures and the public utility commissions began the process of deregulating their state electricity and natural gas markets.

In the United States, 27 states have a deregulated electricity and/or gas market.


What Does This Mean?

In the past, one utility provided all parts of your energy service:

Generation: Making the electricity or gas

Transmission: Moving the electricity or gas from a generating site to a substation

Distribution: Moving the electricity or gas from a substation to you


With Energy Deregulation, Generation is Separated from Transmission and Distribution

CenStar Energy Deregulation Infographic


Generation: With deregulation, you’re able to choose the company that buys energy on your behalf to sell to you, like CenStar Energy.

Transmission and Distribution: Your utility is still responsible for the actual delivery of the commodity (electricity across poles and wires and natural gas through pipelines) to your business or home. Your utility company maintains the poles and wires, or pipelines, and responds to emergencies and power outages. The public utility regulates transmission and distribution to ensure the safety and reliability of your services.


The Benefits of Energy Deregulation

As a consumer in a deregulated energy market, you enjoy the following benefits:

  • Freedom to choose your electricity provider –  a variety of products, prices, and terms
  • Protection from rising costs – lock in a fixed rate for a set period of time
  • Transmission and distribution are regulated by the PUC and guaranteed

Click here to learn more about choosing CenStar Energy as your energy provider.