Though it's not surprising, it is still unsettling to see the number of businesses that are simply leaving New York due to the massive rise in energy prices. The deregulation of electricity has definitely helped the state's economy and given businesses a reason to stick around.
When the power companies were first set up, each one was given a set territory where they could run lines and serve end customers. These territories were regulated by the State, and to a much lesser extent, by the Federal government. These power companies were responsible for providing hookups, generating the electricity, and maintenance of their power lines to their customers.
The majority of power was generated through hydropower or by burning fossil fuels, or even using a nuclear plane. The biggest problem with this is the fact that it costs money to generate electricity, and therefore the customer will be charged. The prices in each area are different, and customers were forced to pay the prices of that particular utility company, and customers usually had no say in the matter.
The Public Service Commission was generally left holding the bag on this one, and the public was not happy with their rulings. It was widely believed that the ruling council sided with the utility companies, and essentially agreed with the raise in price. These costs eventually drove businesses out of the state in the hopes that they would find cheap energy prices. You really can't blame them; it's hard to keep your doors open when you're paying more for the power than you're bringing in monthly.
With the adoption of deregulation moves by New York State, a new window of opportunity has opened for businesses located within the State. The consumer is no longer limited to just one supplier located within the given territory. A business is now permitted to shop around to find a supplier outside a given area that can produce and deliver energy at a lower cost, potentially cutting the cost of doing business. This is true even if a supplier is located in another area, including out of state.
One thing to remember though is that there are two parts to any power bill. First of all there is the delivery charge, which is usually charged in kilowatt hours. Then you have the maintenance charge. The company has nothing to do with this charge, and it is always set by the local utility. No matter how much power is used, there will always be a flat maintenance fee.
Deregulation has opened up many new possibilities for businesses. They can use any power company they want, and consequently save as much as they want. The power companies can now be much more competitive. Power is crossing state lines, and now the federal government is providing protection and support like never before. - 30412
When the power companies were first set up, each one was given a set territory where they could run lines and serve end customers. These territories were regulated by the State, and to a much lesser extent, by the Federal government. These power companies were responsible for providing hookups, generating the electricity, and maintenance of their power lines to their customers.
The majority of power was generated through hydropower or by burning fossil fuels, or even using a nuclear plane. The biggest problem with this is the fact that it costs money to generate electricity, and therefore the customer will be charged. The prices in each area are different, and customers were forced to pay the prices of that particular utility company, and customers usually had no say in the matter.
The Public Service Commission was generally left holding the bag on this one, and the public was not happy with their rulings. It was widely believed that the ruling council sided with the utility companies, and essentially agreed with the raise in price. These costs eventually drove businesses out of the state in the hopes that they would find cheap energy prices. You really can't blame them; it's hard to keep your doors open when you're paying more for the power than you're bringing in monthly.
With the adoption of deregulation moves by New York State, a new window of opportunity has opened for businesses located within the State. The consumer is no longer limited to just one supplier located within the given territory. A business is now permitted to shop around to find a supplier outside a given area that can produce and deliver energy at a lower cost, potentially cutting the cost of doing business. This is true even if a supplier is located in another area, including out of state.
One thing to remember though is that there are two parts to any power bill. First of all there is the delivery charge, which is usually charged in kilowatt hours. Then you have the maintenance charge. The company has nothing to do with this charge, and it is always set by the local utility. No matter how much power is used, there will always be a flat maintenance fee.
Deregulation has opened up many new possibilities for businesses. They can use any power company they want, and consequently save as much as they want. The power companies can now be much more competitive. Power is crossing state lines, and now the federal government is providing protection and support like never before. - 30412
About the Author:
About the author: J. Dyess has been specializing in the Commercial Energy market segment for many years and written articles on Business Electric prices.
