Why are states deregulating/restructuring natural gas utilities?
The objective of deregulation is to offer customers greater choices, both among alternative energy suppliers and services. Ideally, that will result in increased efficiency and dollar savings. Under competition, alternative energy suppliers have to find innovative ways to attract customers such as cutting costs and dropping rates. Deregulation is also expected to increase the reliability of energy supply because deregulating industries attract new capital that can expand infrastructure. Additionally, deregulating industries see an increase in the numbers of alternative energy suppliers offering the product or service. As a consequence, deregulation may increase the number of back-up suppliers if one company experiences problems. Deregulation also promotes new technology. Alternative energy suppliers have more incentive to develop and introduce innovations because they can profit from those that succeed.
