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 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.
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.
