Electricity Deregulation In New York – A Plus For Businesses

Right now, many businesses are making their exit from the State of New York because of the rising energy prices. By deregulating electricity, businesses will have a reason to stay, as well as aid in the growth of the economy.

In the beginning the power companies were provided a territory upon which they were permitted to lay their grids and provide power to customers. Such territories were state regulated, and the federal government had very little say. Such companies were held responsible for the provision of hookups, power generation, and maintenance, though as you’ve seen, the maintenance thing doesn’t always work out.

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.

Now deregulation moves in New York State have provided new opportunities for businesses all over the state, as customers are not limited to a single power company in that territory. Businesses can go to different power companies and even find a lower price if they want. This will cut costs, and they can even use an out of state supplier if they deem it necessary.

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.

Author: Jerry Dyess has been in the Commercial Energy business Texas Electric news for many years.