Electricity Deregulation

Deregulation (or restructuring) of the electricity market was passed by law in 1999. Residential consumers can now choose your electricity provider. Deregulation has broken up the electricity market into three distinct segments, (1) generators, (2) transmission & distribution, and (3) retail electric providers. The unique nature of the transmission and distribution system in the electricity market has kept this segment fully regulated and regionally monopolistic. However, under the 1999 law, the generation of electricity and retail sales of electricity were deregulated so as to introduce competition in an attempt to lower prices and spur innovation.