Key Terms

Deregulation – the elimination of laws and regulations that hinder free competition in supply of goods and services, thus allowing market forces to drive the economy. It does not meant that there is no control but that there are less governmental controls.

Supply – refers to the generation of electricity. This is the element of your energy service that can be priced out to multiple suppliers in order to get the best rate. It is important for you to know that these rates are based on multiple factors, such as weather and market conditions, and they will fluctuate.

Transmission – refers to the transporting of electricity from the utility to the distributor. This portion of the process is still regulated by the government.

Distribution – refers to the process of transporting the electricity to the end user. This is also government regulated.