Here’s how “deregulated” energy changed the way electricity gets to to your home.
Mouse over the items to learn about each phase of the delivery process.
Energy producers compete to sell electricity.
The journey that electricity takes to get to your home or business begins in the "Generation" stage. Companies that generate (produce) electricity compete against one another to sell electricity in Ohio. The fact that competition, and not legal regulations, drive the prices, rates and terms is the reason that electric generation is considered "deregulated". These electric generation companies may or may not be affiliated with your local utility.
Retail energy suppliers compete to sell you electricity that is delivered by your local utility.
Once the electricity is produced it moves into the "Supply" stage. Certified Retail Energy Suppliers, also called Alternative Energy Suppliers, purchase wholesale electricity from generation companies and then compete for the right to supply the energy to you. The supplying of energy is also considered "deregulated". Dynegy Energy Services is one of several Certified Retail Energy Suppliers in your area, competing for your business.
Local utilities like Duke Energy Ohio own, maintain and repair the pipes and lines that carry your energy.
After the electricity has been produced, the supplier you choose ensures the electricity gets to your local utility company in preparation for the "Delivery" stage. Your local utility is responsible for delivering the electricity through their existing electrical wires that run throughout your community and directly to your home or business. Because your local utility is the only company that delivers electricity in your area and does not compete to do so, the delivery portion of the process is considered "regulated". Your local utility is also responsible for routine maintenance and repairs of downed or damaged lines, and for responding to problems and emergencies.
Nothing changes. You still get one bill and the same service from your local utility.
For you, the process of generating, supplying and delivering your electricity happens seamlessly. However, in Ohio, you can proactively choose which company you want to be the supplier of your electricity. This option allows you to shop competitive rates and plans, and potentially save money and avoid fluctuating prices. You'll still receive one bill from your local utility and continue to make payments as usual—but your chosen supplier and the corresponding electric supply charges will be listed on that same bill as a separate line item.