With the anticipation that natural gas prices could rise this summer and upcoming winter season, the opportunity for customers in deregulated states to shop providers, find the better rates and lock in their natural gas price for a specific contract term is all part of that bigger picture.
Natural Gas Deregulation
- There are currently only a handful of states fully deregulated for natural gas, such as Florida, Virginia, New York, Ohio and more.
- In 1978, the Natural Gas Policy Act was the beginning of a move to deregulation. A supply shortage and demand surge made controlling prices for consumers difficult, leading the Federal Energy Regulatory Commission (FERC) to alter how the natural gas was sold to the consumer and to gradually remove price caps at the source, a.k.a. the wellhead.
- January 1993 marked the beginning of the end for regulated natural gas in several states, with Georgia and others following suit and allowing competition among natural gas providers.
- Competition means not only can you choose your provider and rate plan, but also separates the transmission and distribution of your natural gas, but allows natural gas marketers to compete for new customers by offering incentives and lower rates.
Now, with the advent of deregulation, choosing your natural gas plan and provider in deregulated states allows you to not only shop for the lowest rate, but also lock in your rate for an extended period of time. It's as simple as this: enjoying low rates without the worry of fluctuating prices is the greatest benefit of a fixed rate plan, and one of many positives to come out of the deregulation of natural gas.
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