Energy Deregulation for the state of Connecticut
The choice program of 1998 was a plan approved by the Connecticut Department of Public Utility Control. This process began in the 1990’s but took until the early 2000’s to actually come into effect and be practically seen. The main need for this was the fact that the small amount of retailers was not able to produce enough electricity for the growing demands of people in Connecticut. With growth in technology also came a growing need and demand of electricity, which is why deregulation was a policy that needed to be implemented.
Utilities sold their own power plants to other companies so that these companies could enter the competitive market and pen up the entire market to increased competition. The job of the utilities is now to provide the support and infrastructure to these companies in terms of delivering their gas and energy. If someone does not wish to choose an alternative, then the utility they have been assigned is responsible for providing their gas and electricity. This is a default.
This deregulation is not just limited to electricity. Business and industrial customers that use a lot of gas for their machinery etc. on a daily basis can really profit the most from deregulation. Since their use of energy is the most, their chances of saving the most are also the highest. They can actually end up saving hundreds of thousands of dollars annually with choosing a smarter option in terms of electricity or gas supply.
This deregulation has been received positively by customers in Connecticut, and while it may have taken some time, the percentage of customers in Connecticut that swathed their suppliers grew by triple digits in the five years between 20005 and 2010. However, despite being received properly, it is also a great way to introduce and create awareness amongst people about renewable energy. In almost all states that have deregulated their markets, a link between innovative green energy technology development and deregulation has been observed and Connecticut is not far behind in that either. Between 2005 and 2010, CO2 emissions from power plants has been decresaed by a grand 20 percent, which is actually a lot considering the level of pollution that power plants create.
Deregulation is an excellent step to not only increase production of energy, but also to lower energy costs for people so they can save a substantial amount of money in their annual gas and electricity bills.