Energy Deregulation for the state of Rhode Island
Rhode Island made history when it became the first state that allowed non-utility electricity providers to go head to head in completion with state owned traditional utilizes for customers. A restructuring legislature passed in 1996 in Rhode Island made it possible for people to start choosing their own energy providers. However, despite this improvement in energy markets, more than 99 percent of energy consumers in the state have refuse to benefit from this deregulation and still continue to purchase their energy from their respective default utility. Even though another Bill was introduced in 2002 to incentivize people and help lessen energy costs for them, very few have actually shifted their energy providers.
A survey of 1999 showed that only 2000 out of the 456,000 residents had chosen an alternative energy supplying company. Utilities such as National Grid, Pascoag Utility District, and Block Island Power Company and more sold their power plants in order for more companies to come into the market. By doing so, these companies can create more competition in the market, improve their own services, increase the amount of energy being produced, and reduce the price of energy as well.
Deregulation is a choice based system. If people choose to remain with their default electricity and gas supplier i.e. the utility of that territory, then they can obviously do so. If they do, however, wish to make their own experience better as a customer and want to save money as well, they have the options of all the alternative energy suppliers in the competitive market. If they do choose an alternative supplier, the utility still remains responsible for delivering the gas and electricity, billing the customer, and also handling any issues and complaints one might have. This ensures that the already existing infrastructure is used to its maximum without actually disrupting any deregulatory policies.
Rhode Island has regulated both the gas and the electricity market, and the electricity production is mostly done by the natural gas. Deregulation can make it possible for the production of both to become cheaper and less costly for both the actual producers, as well as the customers. Rhode Island is perhaps one of the most energy efficient states of the United States and is also one of the smallest consumers of energy per capita. Despite that, constant improvements in deregulation policies and energy sector marketplaces are being made.