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.
This all started with power companies being given a territory upon which they could do essentially whatever they wanted. They would run their lines and provide power. These territories were overseen by the state and not the federal government. These companies were responsible for maintenance and hookups.
There are a number of ways that power can be generated, though it was normally done with hydropower, fossil fuel burning, or nuclear power. Power costs money however, and in the end it is the customers that suffer. To make it worse, the power in each area was different. It could be high, or it could be low, but no matter what the price was in another territory, they had to pay the price for the territory that they were residing in.
The Public Service Commission was the one that oversaw all of the power company's actions, but many though that they didn't do enough. Some went as far as to claim that the power company actually supported the ridiculous power prices. Businesses left the state in hopes of finding better prices.
Because of deregulation, things have changed quite a bit. Businesses are now free to choose their power company, and if they don't like that company, they can choose another one. To make it even better, the provider doesn't even have to be IN the state for this to work. They can choose an out of state provider with no problem!
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. - 29939
This all started with power companies being given a territory upon which they could do essentially whatever they wanted. They would run their lines and provide power. These territories were overseen by the state and not the federal government. These companies were responsible for maintenance and hookups.
There are a number of ways that power can be generated, though it was normally done with hydropower, fossil fuel burning, or nuclear power. Power costs money however, and in the end it is the customers that suffer. To make it worse, the power in each area was different. It could be high, or it could be low, but no matter what the price was in another territory, they had to pay the price for the territory that they were residing in.
The Public Service Commission was the one that oversaw all of the power company's actions, but many though that they didn't do enough. Some went as far as to claim that the power company actually supported the ridiculous power prices. Businesses left the state in hopes of finding better prices.
Because of deregulation, things have changed quite a bit. Businesses are now free to choose their power company, and if they don't like that company, they can choose another one. To make it even better, the provider doesn't even have to be IN the state for this to work. They can choose an out of state provider with no problem!
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. - 29939
About the Author:
About the author: Jerry Dyess has written about the Commercial Energy business for the past 7 years. Get more information on Business Electric rates.
