It was sometime around the mid nineties the New York state government decided to restructure the electric industry. The idea behind the deregulation was to help both business and customers save money due to the dwindling economy and rising costs of electricity. There are so many monopolies who had their hands in the electric industry, and they could raise the cost of power whenever they wanted.
While deregulation is something that has been occurring within the natural gas industry since the seventies, deregulation in New York is something that took quite a while. The reason for this is that it's a lot more complicated than natural gas. Because of these complications, the restructuring would impact the cost of electricity greatly, as well as the way things work in the power industry in the years to come. So let's take a look at the deregulation in New York to try to understand it a little bit better shall we?
A utility provides a tangible commodity or service that is considered to be something vital to the well being of the general public in the state. These commodities are things like electrical power, water, or natural gas. The utility has the responsibility for producing the commodity, transporting it (in the case of electricity through the power lines they have erected and must maintain), and ultimately, distributing it on the retail level to the individual consumer through a meter and connections to the power grid owned by the utility.
Finally both the state and the federal lawmakers decided that the regulation of electricity was in the favor of the general public. In order to stop the utility companies from charging unfair prices as they had been, the government permitted individual companies to sell services without being challenged within a certain area. Naturally this meant that the company could charge whatever they wanted, and people would have to pay for it if they wanted the lights to be on in their house.
Though there were supposedly safeguards put in place by the Public Service Commission or PSC to make sure that there was no price gouging going on, it didn't seem to work as well as it should have. The PCS barely even said a word about any price gouging, and many people were upset by this. Particularly because they weren't being given a choice in their power provider.
Deregulation in New York was designed to allow the consumer to choose a power company which has a more competitive rate charged for Kilowatt hours (KWh). This offers a potential savings to the individual energy consumer because outside concerns can charge rates less than those set by the original territorial power provider. This also helps theoretically because a consumer is free to choose an electricity provider which produces electricity utilizing a more environmentally friendly renewable generation source like solar or wind compared to the burning of coal which accounts for over a third of all electrical power generated. New York is one of only 19 states which is implementing restructuring to a competitive market.
No matter what happens, there's always going to be a serious problem with the idea of deregulation. The major power company still has to provide the services for the area, and they still have to repair and maintain the power grid. Customers will have to pay a deliver charge on that account because the company does need to do the repairs. Though you might appear to be getting a lower price the deliver charge might actually overpower this.
That particular detail isn't exactly mentioned as these power providers pitch their advertisements. If you are thinking of switching over, you'll need to do some research to see how much money you're going to save in the long run. This is the only way to properly make a decision concerning optimizing deregulation in New York. - 30412
While deregulation is something that has been occurring within the natural gas industry since the seventies, deregulation in New York is something that took quite a while. The reason for this is that it's a lot more complicated than natural gas. Because of these complications, the restructuring would impact the cost of electricity greatly, as well as the way things work in the power industry in the years to come. So let's take a look at the deregulation in New York to try to understand it a little bit better shall we?
A utility provides a tangible commodity or service that is considered to be something vital to the well being of the general public in the state. These commodities are things like electrical power, water, or natural gas. The utility has the responsibility for producing the commodity, transporting it (in the case of electricity through the power lines they have erected and must maintain), and ultimately, distributing it on the retail level to the individual consumer through a meter and connections to the power grid owned by the utility.
Finally both the state and the federal lawmakers decided that the regulation of electricity was in the favor of the general public. In order to stop the utility companies from charging unfair prices as they had been, the government permitted individual companies to sell services without being challenged within a certain area. Naturally this meant that the company could charge whatever they wanted, and people would have to pay for it if they wanted the lights to be on in their house.
Though there were supposedly safeguards put in place by the Public Service Commission or PSC to make sure that there was no price gouging going on, it didn't seem to work as well as it should have. The PCS barely even said a word about any price gouging, and many people were upset by this. Particularly because they weren't being given a choice in their power provider.
Deregulation in New York was designed to allow the consumer to choose a power company which has a more competitive rate charged for Kilowatt hours (KWh). This offers a potential savings to the individual energy consumer because outside concerns can charge rates less than those set by the original territorial power provider. This also helps theoretically because a consumer is free to choose an electricity provider which produces electricity utilizing a more environmentally friendly renewable generation source like solar or wind compared to the burning of coal which accounts for over a third of all electrical power generated. New York is one of only 19 states which is implementing restructuring to a competitive market.
No matter what happens, there's always going to be a serious problem with the idea of deregulation. The major power company still has to provide the services for the area, and they still have to repair and maintain the power grid. Customers will have to pay a deliver charge on that account because the company does need to do the repairs. Though you might appear to be getting a lower price the deliver charge might actually overpower this.
That particular detail isn't exactly mentioned as these power providers pitch their advertisements. If you are thinking of switching over, you'll need to do some research to see how much money you're going to save in the long run. This is the only way to properly make a decision concerning optimizing deregulation in New York. - 30412
About the Author:
About the author: J. Dyess has been in the Texas Electricity business for many years. He has published many articles on Texas Electric prices.
