What is deregulation?
Good old-fashioned competition is the American way. Energy deregulation for natural gas means just that - the removal of certain state regulations that prohibited multiple suppliers from serving California. Deregulation allows for multiple energy suppliers to come in and provide Californians with more natural gas options.
Historically, utility companies owned both the natural gas commodity as well as the infrastructure that delivered it; however, with the introduction of deregulation, the natural gas industry became an open market. Independent suppliers can sell the natural gas directly to consumers, while the utilities continue to provide the pipes that deliver it. An open market leads to more competition, which can help drive prices down and provide customers with better energy options to best fit their needs - including flexible plan options, special products, and better rates.
In California, you can choose! Your energy is up to you.
Common questions about deregulation
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What are the deregulated energy states?
California, Connecticut, the District of Columbia, Delaware, Illinois, Massachusetts.... Maryland, Maine, Michigan, Montana, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Texas.
Why is deregulation in the energy sector necessary??
Deregulation grants energy users the ability to obtain a better understanding of energy, its costs, and how to conserve it. Because there are so many different energy providers, this allows customers to see what plans and companies work the best for them. As a result, this creates competition between the energy firms and motivates them to provide the best service to their customers. Without deregulation, customers wouldn't be able to choose companies that are more aware of the energy we use and how to use it efficiently.
How long has deregulation been around?
Multiple states passed legislation in the late ’90s that opened up the energy.... industry. Opening up the industry created healthy competition by dropping the utility companies into the market with new competitive gas or electric suppliers. Since then, and over the last decade, competition has flourished and consumers are experiencing great savings on their energy bills.
A Brief History of Deregulation in California
Since the early 1990s, the California Public Utilities Commission (CPUC) has overseen the deregulation of the natural gas industry to allow nearly 11 million residential and small commercial customers in the three major utility areas (PG&E, SoCalGas and SDG&E) to choose their natural gas supplier. However, due to the California Energy Crisis of 2000 and 2001, there was a long suspension of this deregulated policy that was known as Direct Access, but the industry is now deregulated once again.
Today in California, independent supply companies sell natural gas directly to the consumer while the utilities continue to deliver natural gas to you. These supply companies are called Core Transport Agents (CTA), which is what Callective Energy is.
More common questions about deregulation
What is a Core Transport Agent?
Core Transport Agents (CTA) are non-utility natural gas suppliers who purchase gas on the behalf of residential and small commercial customers. Callective Energy is a Core Transport Agent. CTAs are licensed and registered with CPUC in order to conduct business in California, however, CTA supplier rates and plans are not regulated by the CPUC.
How is my natural gas bill calculated?
Generally speaking, the typical energy bill consists of Supply (the actual commodity – electricity or gas) and Delivery (the pipes and wires that get the energy to your home or business). Under deregulation, utility companies will still deliver the natural gas to you, but your supplier is your choice. On your bill, you will see charges from PG&E (the utility) and your selected supplier, such as Callective Energy.
Natural gas bills are calculated each month based on your selected plan and rate, your usage, and fees from the utility, your supplier, and the state.
What are the other deregulated energy states?
California, Connecticut, the District of Columbia, Delaware, Illinois, Massachusetts, Maryland, Maine, Michigan, Montana, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Texas.
How long has deregulation been around?
Multiple states passed legislation in the late ’90s that opened up the energy industry. Opening up the industry created healthy competition by dropping the utility companies into the market with new competitive gas or electric suppliers. Since then, and over the last decade, competition has flourished and consumers are experiencing great savings on their energy bills.
Why is deregulation in the energy industry necessary?
Deregulation grants energy users the ability to obtain a better understanding of energy, its costs, and how to conserve it. Because there are so many different energy providers, this allows customers to see what plans and companies work the best for them. As a result, energy deregulation can also promote innovation and efficiency amongst the industry, as it pushes companies to deliver the best products and service to meet customer needs and push the industry forward.
Have more questions?
Check out our FAQ page here or send us a message directly.
Now that you have an understanding of why you have a choice as an energy user, and why energy deregulation is a positive decision for California, see our rates and join Callective Energy now!