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Energy Deregulation Explained – The Power of Choice


Are you using your 40-50% off discount on your gas and electricity bills? At a recent business opportunity conference at Hilton Anaheim CA, we discussed energy deregulation in most states including California’s natural gas market, which  was deregulated in 1991. Due to a lack of understanding or awareness, this huge advantage and wealth trend has not been fully explored by energy consumers.

With energy deregulation every residential or business customer has the choice to save to 40-50% on their energy bills by selecting a competitive open market gas price from their current natural gas supplier or by switching to better offer by another supplier on an Online Energy Portal.

Energy deregulation

According to Wikipedia, An energy service company or energy savings company (acronym: ESCO or ESCo) is a commercial or non-profit business providing a broad range of comprehensive energy solutions including designs and implementation of energy savings projects.
ESCO’s are Alternate suppliers in the energy deregulation market who usually have minimal overhead, because they buy gas commodities, use already existing pipe lines to transport energy passing the savings on to customers, like you.

**Note: Nothing changes as far as services and handling your bill. You will get a notification letter from your existing or newly chosen gas local company about the affiliated ESCO supplier. For service issues and emergencies like a gas leakage or broken pipeline, you will still contact your gas company directly.

There is no downtime or other risks involved. Third-party suppliers are able to sell you natural gas at a discount and you continue to use the utility’s existing pipelines to transport the natural gas to your facility or residence. There are no setup or connection fees and your utility company will not charge for transportation costs.

Energy deregulation





Following energy deregulation in the United States, the residential energy program markets served are highlighted:
California, Connecticut, Delaware, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Texas.


For commercial markets and businesses, the states served are highlighted:
California, Connecticut, Illinois, Indiana, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, and Pennsylvania .


Visit an Online Energy Portal to review competing offers from suppliers and the various terms and pricing options per market. They all list their fixed or variable pricing. Fixed rates allow customers to lock in a particular rate during the life of the contract period while variable pricing is usually at a discount and fluctuates with market conditions from month to month.

  • Natural Gas
    Energy Service Companies (ESCOs) provide simple gas rates represented in “Therms”, so that they are easy to understand. Therms is the measure of the volume of gas supply used over a billing period. The energy offer is listed as price per Therm.
  • Electricity
    Electricity offers will also be provided by ESCOs in select markets. The standard unit of measurement for electricity is “kilowatt-hours”. Competitive supply offers show the price per kwh for the supply part of electricity usage. This option for deregulated electricity will soon be available in California but please check availability for other states.
  • Petro Heating & Air Conditioning
    Throughout the Northeast and Mid-Atlantic, home heating oil and air conditioning services are available. Founded in 1903, Petro has been servicing customers for over 100 years. Their experience, dedication to customer satisfaction, large network of resources and local customer service, technicians and drivers has kept them #1 in the industry.

Energy Deregulation


Review your bill and you’ll notice that the average baseline rate per therm is usually about $0.76 , and it increases to over $1.10 per therm over the baseline usage. With this energy deregulation, gas customers can lock in a rate as low as $0.4460 without worrying about baseline usage.

Many households, schools and businesses with high gas usage like restaurants, can save an average of $1000 to $2000 a year. Customers in California’s CARE program are still eligible for all the savings and rebates.

There are various completing offers from ESCOs but here are the most popular selections:

Energy Offers/Rates* SoCal PG&E SDG&E Cancellation Fee
Energy Variable /Monthly Rate $0.4460/therm+ $6.99 Monthly fee Save 3-5% off Utility rate + $2.99 Monthly fee $0.4460/therm+ $6.99 Monthly fee $25(PG&E has no variable rate cancellation fee)
Energy Fixed/ 12 month Rate $0.4460/therm+ $6.99 Monthly fee $0.55/therm+$2.99 Monthly fee $0.4290/therm+ $6.99 Monthly fee $70
Energy Fixed/ 24 month Rate $0.4460/therm+ $6.99 Monthly fee $0.57/therm+ $2.99 Monthly fee $0.4290/therm+ $6.99 Monthly fee $137

*Actual offer terms may vary from those above and only actual offer terms at enrollment will apply.


  • Find an Energy Deregulation Portal
  • Select the State and enter your zip code.
  • Enter a valid email address  and check if an offer is available in your area (PG&E, SoCal, SDG&E – San Diego Gas & Electric provides gas in California)
  • Enter personal information (Name, Delivery Address, Billing Address)
  • Enter Credit Information (Standard requirement for any utility service)
  • Enter Equipment information (Meter Number indicated on your Bill)
  • Select an offer ( Fixed or Variable rates and the Duration)
  • Select service plan options (optional) and Submit forms per instructions.

Technology and energy deregulation has changed the game and you also can become an energy broker and share in the wealth. Check out more information on Energy Savings.

Author: A Danesi

A. Danesi is a writer, a business and marketing consultant with an MBA in Financial Management. “I love people, writing & crunching numbers…in that order – Please Like, Connect, Comment and Share. Thanks for hanging out!”

Categories: Finances & Money, Reviews

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