The History of Energy Deregulation in Pennsylvania

Energy deregulation has had a profound effect on the energy industry in America. The ability to choose one’s energy provider has been a boon for energy consumers and has created a system with healthy competition for many retail energy providers, including those in Pennsylvania.

What is energy deregulation?

With energy regulation, energy consumers only have one option when it comes to receiving energy—there are no choices. However, in a deregulated energy system, consumers are afforded the ability to choose their energy provider. As a result, competition becomes a factor as energy companies compete for customers, ultimately resulting in lower overall prices.

How did electricity in Pennsylvania become deregulated?

Pennsylvania’s journey to energy deregulation began in 1995 with the passing of House Bill 1509, known as the Electricity Generation Customer Choice and Competition Act. House Bill 1509 eliminated monopolies on electricity, opening the energy market and allowing energy providers to compete and lower their electricity prices. While the process of deregulating began in August of 1997, it wasn’t completed until 2000.

Why does energy deregulation matter to customers?

First and foremost, energy deregulation gives today’s energy consumer the ability to shop around for the best energy provider. Energy deregulation has made the energy market similar to most other types of consumer markets and industries in our country. When it comes to most other products—think of anything from a car to a cup of coffee—you always have more than one choice. This type of flexibility is a great benefit for energy consumers—and the lower cost of electricity is welcome as well!

The process of energy deregulation has allowed for the creation of companies like us—Star Energy Partners. Without energy deregulation, we would not be able to provide premier energy and energy-related products to our commercial and residential customers.

You can learn more about the history of energy deregulation in Pennsylvania and beyond by clicking here.