Natural Gas Deregulation

Deregulation of natural gas is a mixed bag for consumers

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.

 

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.
Try: 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.
Try: 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.
Try: 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.

 

• 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.

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