Deregulated Energy: Why Pay More?

The word “deregulated” can sound off-putting, but in energy it represents a genuine opportunity for property managers and owners. Over the last decade, the market for deregulated energy has surged across the United States.

A short history

Deregulation began with the Public Utilities Regulatory Policies Act of 1978, which allowed independent energy providers and suppliers to operate across the country. The Energy Policy Act, passed 14 years later, removed limits on the price that could be charged for wholesale electricity, setting off a state-by-state deregulated energy boom.

Regulated vs. deregulated

The difference is simple. In regulated markets, the utility owns and operates everything from generation to delivery. In deregulated markets, multiple retail suppliers buy and resell electricity off the grid, or gas from a supplier, often at lower rates than buying directly from the primary provider.

Property owners and managers can choose their energy supplier in more than 20 states, mostly across the Northeast and Midwest, that allow some form of deregulated supply for electric, gas, or both. The total market opportunity across the Northeast is over 26 million consumers, with nearly 7 million in Texas alone. If you’re in a regulated state, it’s worth working with a company that offers a full suite of energy supply management services.

Lower your largest recurring expense

Utilities are a property’s single largest recurring operating expense, so working with a third-party supplier creates real room to cut costs. Capturing that savings calls for a strategic procurement partner, one who evaluates each supplier’s market presence, pricing, billing accuracy, and customer service to find the best fit for your needs.

USA Energy provides a full supply opportunity assessment for anyone interested in energy supply management. We help property managers of every size identify which markets have the highest potential for savings and build custom programs around them. All electricity is created equal, so don’t get left in the dark when it comes to your overall utility spend.