Deregulation of natural gas has opened the market to competition and choice. You can choose an alternate supplier to lower your price, give you price sustainability that was not available with variable utility rates, to allow for longer-term contracts, and to give you energy that is from environmentally friendly sources.

The regulatory changes mandated by the Federal Energy Regulatory Commission (FERC) mean that deregulation of natural gas gives prices that are no longer regulated. What this translates into is that pricing fluctuates with supply and demand interactions.

To find out more about natural gas deregulation news and trends:

1. Use federal and statewide resources to help you understand the topic and to see who is taking part in natural gas deregulation information programs.
2. Take advantage of information on deregulation of natural gas from action groups and private companies. There are two sides to every issue, and it is interesting to see the pros and the cons of the topic.

3. Find resources for each state on natural gas deregulated.

Action Steps
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Find government and statewide information on deregulation of natural gas

Take advantage of Federal resources on deregulation of natural gas. Also look at sites that give you a state-by-state comparison of deregulation.

I recommend: Follow information provided by the Energy Information Administration's Official Energy Statistics from the U.S. Government. See what they have to say about U.S. Natural Gas Markets: Recent Trends and Prospects for the Future. Look to Independent Energy Consultants to discover information by state. Also find factors that may influence consumer decisions when choosing a deregulation of natural gas service provider.

Look to private sources and action groups for info natural gas privatization and deregulation

Take advantage of advocacy and watchdog groups that keep an eye on deregulation issues and companies. Also make the most of private groups that issue information on the topic.

I recommend: Keep up with deregulation natural gas updates from action group Public Citizen. They provide information on oil, natural gas and deregulation. Find out about Illinois electricity deregulation and natural gas deregulation from Seven Utility Management Consultants.

Find state natural gas deregulation site resources

Take advantage of natural gas deregulation site resources to help answer your trend and news questions.

I recommend: Keep up to date statewide with natural gas deregulation sites like the Georgia Public Service Commission. Learn about deregulation in Ohio from OhioNaturalGas. IndianaNaturalGas also offers helpful information on deregulation.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider the consulting services of a consultant, broker or aggregator to help you with the negotiation of natural gas deregulated contracts or to help you learn more about natural gas deregulation. Once your deregulation of gasoline or deregulated natural gas has occurred, you have to choose the right supplier, and having an educated consultant team can help you throughout the process by offering you current up-to-date industry news, information and advice.

Natural gas deregulation is part of the history of regulation of public utilities. Natural gas deregulated via restructuring, which began in 1985. Deregulated natural gas and electricity is supposed to bring these energy sources into market competition and therefore bring down its price. This is what occurred when the telephone and airline industries were deregulated. However, some deregulated natural gas and electricity areas found that prices sky rocketed.

Natural gas privatization is also an effort to avoid natural gas shortages, which occurred in the 1970s due to inter- and intra-state regulations regarding transmission of gas over state lines and the shortage of pipelines. It is believed that the privatization of the natural gas industry will increase the amount of new technology used and consumers would benefit from that.

1. Not all states have instituted deregulation; natural gas consumers in a few states have this choice.

2. Some states have commercial natural gas deregulation; gas used for commercial use is not regulated, though residential use is regulated.

3. The parties involved in deregulation are the government, including the Department of Energy, the gas industry and the industries that get work from the gas industry.

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Take a look at where natural gas deregulated

Natural gas deregulation information can be found from your state's energy and utilities websites and from the Department of Energy website. You may not be aware if your state is using regulated or deregulated gas.

I recommend: Quantum Gas & Power provides a list of natural gas deregulated states. The Department of Energy website is also a good place to start. It favors deregulation and gives its reasons why.

Benefit from natural gas privatization if you are a big energy user

Big energy users such as universities and hospitals can broker fixed price contracts with deregulated gas companies. Cities and municipalities can turn themselves into buying groups and gain a fixed rate for gas with a deregulated natural gas company. This ensures that for the duration of the contract, rising gas prices will not affect them.

I recommend: Power Options is a buying group that works with non-profits to arrange a fixed price contract with a deregulated gas company. Energy Aggregation has saved money for its clients, brokering fixed price contracts with deregulated natural gas companies.

Find companies that provide deregulated gas

In an effort to get more information on natural gas deregulation, it is helpful to look at companies that provide this service.

I recommend: Dominion out of Ohio is a provider of deregulated natural gas. It offers its customers the opportunity to choose which supplier they wish to use for their natural gas, thereby increasing price competition. Northeast Energy Providers offers its business customers the opportunity to inquire about and receive cost-savings through its service of deregulated natural gas.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  According to experts, the deregulation of natural gas is still in transition. Expect state legislatures and regulators to create policies that will force deregulated gas suppliers to be more cost-conscious and competitive.

When working in the natural gas industry, it is imperative that you have the most current natural gas deregulation information. With deregulation, natural gas businesses have much more freedom to conduct business with less control from government restrictions. But despite the deregulation of the industry, it is still important to fully understand all parameters of deregulation to ensure that your business is compliant with all current regulations.

In order to stay properly informed about natural gas deregulation, you will need to seek out sources of natural gas deregulation news and trends. As you begin your search, keep the following in mind:

1. Industry associations are great sources of news about natural gas, deregulated.

2. Government regulatory bodies can provide you with the most current deregulated natural gas news.

3. Other natural gas industry bodies provide in-depth news about deregulation on their websites.

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Look to industry associations for natural gas privatization news

The news sections of natural gas industry associations are great places to find news and useful information concerning natural gas deregulation.

I recommend: Visit the Newsroom on The Natural Gas Supply Association website. Here you can read press releases, current news articles and browse the news archive. You can even search for articles that cover deregulation specifically. Go to the News Releases section of the American Gas Association's website where you can search news articles or sign up for its RSS feed.

Get the latest news about the deregulation of natural gas from government sources

When you want to know about natural gas deregulation, go straight to the regulatory bodies that govern the industry. Government sites not only provide current news about deregulation, but also provide excellent background information about deregulation as well.

I recommend: Visit the News Releases section of the Federal Energy Regulatory Commission's website to search news releases and media alerts for the latest natural gas deregulation news. You can also sign up for the FERC Newsletter or the RSS feed. Go to the Natural Gas What's New? section of the Energy Information Administration website for the latest news in natural gas deregulation.

Read commercial natural gas deregulation news at industry websites

There are many natural gas news resources available online that provide in-depth coverage of natural gas deregulation in addition to many other related issues affecting those in the field.

I recommend: Read the most current natural gas news in the Media Center on the Center for Liquefied Natural Gas website. The site provides access to news dating back to 2004 and equips you with a convenient search function. Read the most up-to-date headlines or search the archives in the News section of the Interstate Natural Gas Association of America website.

As the production and use of natural gas increases, transportation of natural gas across state lines has become more common. While local municipalities were at one point able to oversee the transportation of natural gas within their jurisdiction, the growth of the industry left a gap in oversight once intrastate transportation commenced. In response, states stepped in to regulate transportation within their jurisdiction, however, as interstate movement increased, the federal government took regulatory action.

Over time, regulation, which was initially put in place to protect consumers, started hurting consumers. Consequently, the age of deregulation began. It started with the Natural Gas Act of 1978 and progressed gradually over the subsequent decades. To understand this progression, it's important to understand the following key terms.

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Natural Gas Act of 1938

During the 1930's there was an increasing sense of concern regarding the ability of interstate pipeline companies to set pricing. Consequently, the Natural Gas Act of 1938 was created, giving the Federal Power Commission authority to establish rates deemed to be just and reasonable.

I recommend: The Energy Information Administration (EIA) details various aspects of the Natural Gas Act of 1938.

Phillips decision

Phillips Petroleum Co. versus Wisconsin, 37 U.S. 672, was a case presented before the United States Supreme Court. The final decision in this case meant that the FPC could set the prices at which the natural gas producers sold their product to interstate gas companies. Prior to this decision, the FPC only had control over the prices set by interstate gas companies when selling their product.

I recommend: NaturalGas.org provides specific information regarding the Phillips decision.

Natural Gas Wellhead Decontrol of 1989

The Natural Gas Wellhead Decontrol of 1989 was the act which mandated that sales of natural gas would be deregulated by 1993. This act also retracted all regulations on the pricing of wellhead sales.

I recommend: For additional information about the Natural Gas Wellhead Decontrol of 1989 review information provided by Southwest Energy.

FERC Order 636

FERC Order 636 placed an emphasis on the unbundling of services provided by interstate pipelines. Basically, this meant that the sale of natural gas could not be combined with the cost of transportation. As a consequence of this order, customers could decide which gas sales, transportation and storage provider suited their needs.

I recommend: Allbusiness.com explains how the FERC order 636 changed tax planning in the gas industry.

FERC Order 637

FERC Order 637 tweaked Order 636 by regulating short term pipeline services and interstate pipelines. It also allowed the natural gas companies more leeway when managing pipeline capacity contracts.

I recommend: Additional information regarding the FERC Order 637 is available through the American Gas Association (AGA).