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What is Energy Deregulation?

Everybody I know uses energy!

Everybody I know uses energy!

How many people do you know that:

  • Take a hot shower?
  • Use a computer to surf the Internet?
  • Turn on a light bulb at home?
  • Open their garage door?
  • Use a stove to cook their food?
  • Heat their homes in the winter?
  • Or, cool their homes in the summer?

Everybody uses energy – it is simply a part of our everyday lives. There is nothing we can do to escape it.

How many people, do you think would like to lower their energy costs? I think almost everybody would!

So let me ask you a question. If you had a choice buying the same exact toaster from two different stores for two different prices, which store would you buy from? If you are anything like me, then I’m sure you would tell me that you are going to buy it from the store that costs less money.

This is because we both know that the toaster is identical. It will operate the same. It has the same warranty. It will look the same when it sits on my kitchen counter. The point is that it will be exactly the same, regardless of which store I buy it from.

The same is true with energy. Everybody uses energy almost all the time, but we never really think about paying less for it. Most people do not even know that they have an option to pay less for it.

The theory and purpose behind energy deregulation is to give you and me (“we consumers”) a choice to buy the energy we use and consume from different energy providers.

However, if you are like most people, you have never even heard of energy deregulation. So now that I’ve got your attention, the question really is, “What is Energy Deregulation?”

Well, I’ll try to make it easy to understand. I am going to give you some basic education about energy deregulation. The purpose is to help you begin to understand what it means, how it works, and how you can SAVE MONEY!

To simply explain it, energy deregulation allows us (“we consumers”) to choose who we want to supply electricity and natural gas to our local distributor. This local distributor is the local energy company that we have always bought our energy from.

Everything is delivered in exactly the same way by our local distributor (the same as it always has been). There is no change whatsoever in the energy that we use and consume, but we can now choose who our local distributor gets the energy from that we use everyday.

When energy deregulation is available in my state, I am free to choose an alternative energy supplier. In theory, energy deregulation is intended to introduce competition. This competition is then intended to create more competitive pricing in the marketplace. And, this competitive pricing is intended to lower the prices that “we consumers” pay for our electricity and natural gas.

Not every energy company is entirely ethical, however. Some energy companies try to take advantage of naïve consumers and actually end up charging them more for their energy.

I have compiled a list of specific criteria to use when evaluating energy providers, and I will discuss this in a future blog post! For now – let’s get back to our introductory explanation of what energy deregulation is!

The following video shows an independent news case. This gives a basic explanation about how energy deregulation works, and how “we consumers” can actually save money, because of energy deregulation!

The idea behind energy deregulation is that we can choose to lower our monthly energy rates without any change to our local service whatsoever. Regardless of who you choose to provide your electricity and natural gas, the energy that you use in your home will be delivered the same way, operate the same way, and continue the same way.

My next blog post will explain how energy deregulation actually works! I am writing a series of blog postings to help provide some education.

I will continue this series, but if you want to view much of my research in full context, please visit: www.DiscountEnergyPlan.com. I will explain my detailed research, and show you how to save real money on your monthly bills.

If you are interested in learning about how you can further benefit from energy deregulation and actually make money at it, please click-through and view detailed information at: www.Energy-Wealth.com

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How Energy Deregulation Works – Part 2

Okay, let’s recap from the last posting:

I'm Learning About Energy Deregulation!

I'm Learning About Energy Deregulation!

Energy deregulation gives us a choice in deciding who we want to provide the energy we use in our homes.

I can choose to pay lower rates from an alternative supplier. My local energy company continues to deliver energy to me, without any change whatsoever.

The energy that you and I use is identical, regardless of who supplies my energy, and who supplies your energy.

For visual purposes, I will use the following analogy again. All of our energy is stored together in a large reservoir. This energy is then delivered to both my home and my neighbor’s home for local usage. Energy deregulation, simply allows me to designate, which energy provider (or supplier) that I want to deposit my portion of energy usage into this giant energy reservoir.

Nothing changes with the energy that I use in my home, regardless of who my energy supplier is. The local energy company continues to deliver energy to me (this is the energy distributor), and they continue to provide me with local service.

There is no service change, no energy interruption, and nothing changes about the energy that I use. The only difference is that I can choose an energy provider that offers me lower rates!

Next time you look at your electricity and natural gas bills, take notice of the fact that you are paying for two separate things. First, you are paying for the energy you consume. This is the kWh (electricity) and the Therm (natural gas) usage you see on your bill.

Second, you are paying a local delivery charge. This is because your local energy provider owns the distribution pipes and wires, and still has to maintain them. They will continue to service you locally, regardless of who you actually designate to be your energy provider.

For clarification, energy deregulation simply introduces competition. As a consumer, I can choose who I buy my energy from. Because my local energy company has always had entire control over my energy purchase, they have always set the prices that I paid. In the past (before energy deregulation), I never had a choice about this.

However, with energy deregulation, I can now choose to use an alternative energy supplier that will offer me lower rates on the energy that I use and consume. The local energy company will continue to distribute this energy to me, regardless of who my energy supplier is.

Because of codes and government requirements, the energy that I receive will be identical, whether I continue to use my incumbent energy supplier, or choose an alternative energy supplier. My electricity and natural gas will operate exactly the same, it will be delivered exactly the same, and I will not incur any power outage if I choose an alternative energy supplier.

You see, energy deregulation gives us a choice. There is no risk at all about the energy that I buy and use. Local service continues in the exact same way. Energy is delivered in the exact same way. And, the quality of my energy is identical, regardless of who I buy my energy from. If I have a problem and need service, I still call my local energy company who continues to be my local energy distributor.

In most cases, your billing will stay the same as well. Your local energy company will continue to provide all of your bills. You continue to pay your local company in the same way. This is because it doesn’t matter who I buy my energy from (my energy supplier), the local energy company will always deliver it to my home (my energy distributor).

I am writing a series of blog postings to help provide some education. I will continue this series, but if you want to view much of my research in full context, please visit: www.DiscountEnergyPlan.com. I will explain my detailed research, and show you how to save real money on your monthly bills.

If you are interested in learning about how you can further benefit from energy deregulation and actually make money at it, please click-through and view detailed information at: www.Energy-Wealth.com.

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Energy Deregulation: How it Works – Part 1

Energy has traditionally been one of those industries that is controlled by one local company. This means that this local company essentially had a monopoly on my business. To put it candidly, there has traditionally been only one natural gas and one electricity option in my home.

Energy Deregulation has recently started to give consumers a choice and break up these long-time monopolies. The idea is to create competition and in turn, give consumers a choice about the electricity and natural gas that they buy and use each month.

Energy Deregulation Can Save You Money!

Energy Deregulation Can Save You Money!

These incumbent energy providers have never had any competition, and, for the most part, have grown fat and lazy. This means that new competitors (as introduced by energy deregulation) are able to offer much more competitive products at a lower cost to consumers. In theory, this means that we should be able to save money on our monthly electricity and natural gas bills!

Let me explain a little bit about how energy is delivered to our homes. First there is an energy supplier that actually delivers the energy into the local grid for distribution. You can view this almost as if there is a big reservoir that holds all of the energy for our local area. This reservoir feeds all of the homes in our area with the energy that is used and consumed.

Second, there is a local energy distributor that takes the energy from the reservoir and actually delivers this to your local home. This local energy distributor is the traditional incumbent provider that you have always paid your natural gas and electricity bills to. They have enjoyed a long-time monopoly on selling you electricity and natural gas.

Energy deregulation simply gives us a choice in deciding who we want to provide the energy we use. Let me clarify. The energy we use is all the same. The energy that I use is identical to the energy that my neighbor uses. Energy deregulation, simply allows me to designate, which energy provider that I want to deposit my portion of energy usage into this giant energy reservoir.

For clarification, all of the energy providers that now compete as a result of energy deregulation all supply the energy they sell into this large energy reservoir. All of this energy is held together and then delivered to the home. There is absolutely no difference between the energy from one provider or another provider. All of the energy that is delivered locally is identical regardless of whether it is delivered to my home or to my neighbor’s home.

So, when I choose a different energy supplier, my local energy distributor will operate in exactly the same way that they always have. This is because my local energy distributor owns the pipes and wires that deliver the energy to my home. It is important to realize that nothing changes at all with the energy that is delivered, and how that energy is delivered to my home.

The following video will provide a basic explanation about how energy deregulation works.

I am writing a series of blog postings to help provide some education. I will continue this series, but if you want to view much of my research in full context, please visit: www.DiscountEnergyPlan.com. I will explain my detailed research, and show you how to save real money on your monthly bills.

If you are interested in learning about how you can further benefit from energy deregulation and actually make money at it, please click-through and view detailed information at: www.Energy-Wealth.com.

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