Natural Gas De-Regulation

Historically, consumers received supply and delivery of natural gas from a single company who had the monopoly franchise for the region in which they lived. These companies bought gas on the wholesale market and sold it to consumers in their jurisdictions according to regulated rates set by the local regulatory agency, an energy board or public service commission.

Natural gas is being deregulated across much of the United States. This means that a qualified business can buy gas directly from a supplier at a competitive price -- not just from the gas utility. These utilities, however, continue to have the franchise to distribute gas and charge a regulated fee.

Deregulation separates the sale of the gas as a commodity from its distribution. The product is available at a competitive price and under competitive conditions but the delivery is a standard regulated charge.