Illinois and Massachusetts have been seeing some benefits by reducing their energy use during peak demand hours. These benefits are very economical in that they stave off extra wear and tear on the electrical grid, reducing the load all around. The electrical grid is a very complex system that distributes electricity to every home and business within its operational area. During peak demand hours, all the homes and businesses in that area are drawing a lot of power. This can put a lot of strain on the grid’s network, and potentially cause outages if the demand were to exceed the energy production.
In Illinois and Massachusetts, utilities began compensating commercial, industrial, and residential customers when they reduce their energy use during peak demand hours. It may seem counterproductive economically to pay people to use less electricity, but the reduction in energy use outweighs the compensation, which likely
There are so many options when it comes to choosing an alternative retail energy supplier (ARES) that it may feel overwhelming. The reason why there are so many to choose from is because of deregulation. Deregulation of the energy market broke the utilities’ hold over energy prices. Before, utilities were able to set the price for electricity and generally only offered a single “plan”. Now, several ARES compete against each other, offering different plans with different rates. This competition means that prices have dropped across the board.
How does deregulation work?
In many states, utilities still offer electricity service, but you are no longer required to purchase from them. Source Power & Gas is an alternative retail energy supplier that offers flexible term lengths, competitive rates, and special offers. However, you only purchase your electricity from the ARES; the reliability of your service is still related to