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Energy deregulation­ has enabled consumers to purchase their energy supply from Energy Service Companies (ESCOs). Before deregulation,­ both natural gas and electricity were supplied only by regional monopolies or local utilities that owned both the power plants and transmission­ lines for distribution.­ In deregulated markets, the utility company is no longer the only option for energy supply. While suppliers compete for your account, they keep prices down and push all participates­ to create better service.

Competitive suppliers are able to provide a variety of options for terms and rates. The only change that takes place is the source of supply. However, the utility company still continues to deliver the energy through the pipeline so there is absolutely no disruption to the service when switching. The local utility also continues to read the consumers' meter and maintains service.