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A map of deregulated energy use in the United States

Deregulated Energy: Everything You Need to Know

Deregulated Energy

Understanding the energy that powers our living spaces might not be something that we think about often. Even though getting in-depth with energy may seem complicated, we’re here to make understanding deregulated energy a little easier. To better understand the topic, we’re diving into a bit of the history of energy regulation, how deregulation works, and how it can benefit you.

A Brief History of Energy Regulation

Like many industries, energy has seen its ups and downs in the United States throughout the years. Energy utilities in the U.S. originally started without regulation, and there was competition among power companies that kept prices down. This competition spurred growth and development in the industry. Unfortunately, due to the rapid growth, there was a negative effect on the infrastructure. With so many companies developing, there were different processes and standards for delivering energy, which left energy users with poor service.

The Government Steps In

Due to the inconsistencies in service, the U.S. government stepped in a few times to respond to the situation. In 1935, the Public Utility Holding Company Act was passed to prevent utility companies from subsidizing unregulated business activities from profits obtained from their regulated business activities and captive customers. 

Later, in 1986, the North American Electric Reliability Council (NERC) was founded to split the U.S. into ten energy regions. Although NERC was effective at improving the reliability of energy delivery, like it was intended to, it also allowed for local energy monopolies to pop up. These monopolies would often overcharge energy users who had to foot the cost of any expansion projects initiated by these companies.

Due to these companies' financial instability from expansion projects, many were on the verge of bankruptcy. In 1977, the Federal Energy Regulatory Commission (FERC) was created. After its founding, FERC, along with the Energy Policy Act of 1992, made a move to deregulate the energy industry and let individual states decide how energy was supplied to users. As a result, competition was once again introduced to the energy industry, and deregulation began across states.

Deregulated Energy States

As states began to decide how to distribute energy to their citizens, several chose deregulated energy. This option gave energy users the choice of who provides their energy, while utility companies still own the delivery infrastructure. Even though a majority of states still regulate their energy, many have moved to deregulation for either gas, electric, or both, including:

Chart of Energy Deregulation available by state

How Deregulated Energy Works

If you are in a state that offers deregulated energy, it means you have the option to choose who your energy supplier is. An energy supplier will purchase energy from the utility companies and then sell their energy supply to consumers. Consumers will still receive their energy from the utility companies’ infrastructure. This process gives consumers more control over the rate they pay for energy while still receiving the same service quality.

Benefits of Deregulated Energy

Energy deregulation offers a variety of benefits to both companies and consumers. Most notable is the ability for energy users to choose an energy supplier and plan that suits their needs or budget. Other benefits include:

  • Corporate Competition – As can choose, companies can offer specific rates and services to attract customers.
  • Energy Consciousness – Customers are encouraged to understand different energy costs by investigating different companies and their plans.
  • Energy Efficiency – Energy practices can play a role in consumers choosing a company. This method for selection, in turn, motivates companies to be more energy efficient.

At Astral Energy, we’re proud to offer our Ultimate Power Plan as an option for energy consumers. With our plan, you will receive all the energy you can use at a flat monthly fee that won’t change throughout the year. Request a quote to find out your price today!

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6 Best Ways to Save Energy and Money on Your Air Conditioner During the Summer

Summertime has a lot of exciting and fun activities. It includes pool parties, baseball games, backyard cookouts, and more. However, one thing that’s not so good about this season is the scorching heat. With that, it can be tempting to stay at home during the hot summer days.

Running your air conditioning system can account for a significant cost during the summer. Nearly half of your average electric bill is spent on cooling your space. It’s also one of the biggest energy consumers in your home. It uses about 3,500 watts or 3.5 kilowatt-hours for every hour of running the system.

Fortunately, there are a lot of ways to help your air conditioner run better and save money during the summer months. To get more idea, here are six cost-effective ways to save energy and money on your air conditioner during this season.

Use a Smart Thermostat

Upgrading into a smart thermostat is an excellent way to reduce your heating and cooling costs during the summer. This high-quality device can help regulate your cooling system from time to time and save money. You may also adjust its settings automatically using an app on your mobile device.

Utilizing a smart thermostat will help increase your home’s temperature when you’re asleep or out of your house. With the help of this tool, you can set your AC unit at a high temperature as possible and make your space more comfortable. Hence, you can reduce your cooling bill by about 10 percent.

The smart thermostat allows you to turn on or off your AC unit automatically. It can also help automatically keep the temperature on your house at a steady level during the day and at night. Just like a reliable electric company like Astral Energy, using this tool will also help you save up to 10 percent of your annual cooling and heating costs.

Use a Ceiling Fan

The use of a ceiling fan is a cost-effective way to make your space feel up to 10 degrees cooler. It uses only about 10 percent of energy than running a central air conditioning unit. It also allows you to raise your smart thermostat setting up to 4 degrees Celcius without reducing comfort.

A ceiling fan can help effectively circulate the air in your room and help create a draft throughout the area. It can also make your space more comfortable via its wind-chill effect. However, you also need to turn off the fan when you’re not using it, which helps promote global energy conservation initiatives.

Apart from that, you can also install a high-tech smart ceiling fan that can connect into an app. It allows you to automatically turn on and off your fan as well as controlling its speed remotely. It also has built-in radios and sensors that can help regulate the temperature in your room more efficiently.

Insulate and Seal Your Doors and Windows

Adding insulation to your home is a great way to reduce the heat that can pass through your walls. It can help keep your space cool during the summer and warm during the winter. Insulating your attic can also help prevent the sun from heating your room into oven-like temperatures.

Insulating your attic will help keep the stored heat from spreading throughout your house. Doing so can help you save up to 40 percent of your cooling bill. You can install blown-in cellulose insulation for your attic. It’s the most practical and cost-effective option to save energy on your cooling and heating costs.

Sealing your doors and windows is also a great way to help keep your house cool during the summer. It’s essential to seal the gaps around your windows and doors to avoid air from escaping, which is one of the causes of energy loss. You can utilize caulk or weatherstripping to help lower your energy use by about 10 percent.

Shade Your Windows

The direct sunlight can heat your house by entering through your windows. It may increase the temperature in your room by up to 10 to 20 degrees Fahrenheit. It may also cause your AC system to work harder to cool your space. Thus, incorporating window treatments such as shutters, roll-up shades, and curtains can help reduce solar heat gain.

You can close your blinds or curtains on the windows that face toward the direct sunlight. You may do it throughout your house if you’re out during the day. If you’re at home, you may close your curtains on windows that face in the east in the morning. You can open them in the afternoon, and close the ones that are facing in the west.

Avoid Heat Buildup During the Day

The heat in the summer can increase the temperature inside your home. With that in mind, you need to avoid activities that can generate a lot of heat, especially during the day. It includes using the dishwasher or clothes dryer and cooking on the stovetop.

Instead, you can microwave your food or grill it on the outside, hang your clothes on a clothesline, and wash your dishes by hand and let them air-dry. You may also try to do them during the night when temperatures had dropped. The use of a bathroom exhaust fan will also help remove excess heat and humidity when you bathe during the day.

Maintain Your Cooling System

Sometimes, it’s not enough to install a programmable thermostat and use an energy efficient AC unit. If you don’t properly care for your appliance, then you won’t reduce energy costs from your cooling bills. Dirty air conditioning filters may block airflow, which makes it work harder to cool your home during the summer.

Regularly cleaning your AC system and replacing its filters once a month can help lower its energy consumption by about 5 to 15 percent. For your central cooling system, make sure that your floor isn’t blocked with dust or furniture. Its evaporator and condenser coils must also be clear of debris and dirt to help keep them work at their highest efficiency level.

Takeaway

Running your air conditioner in the summer can significantly increase your electricity bill. But there are a few ways to save on energy and money on your cooling costs. You can do the cost-effective ways listed above to help your air conditioner run better while saving energy as the summer months progress.

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