To understand energy deregulation, you’ll want to start by looking at your energy bill. In most states, your energy bill is split into two main services: supply and delivery:
Supply: Energy supply service accounts for the cost of energy – electricity and/or natural gas – from the source. This part often makes up the largest part of your bill.
Delivery: This portion of your bill is the fee for the distribution of energy from the source to your home through your utility’s infrastructure.
Twenty-nine states have deregulated electricity, natural gas or both. That allows you to shop for the supply portion of your bill from alternative providers who may offer rates lower than the default supplier – usually a utility. Delivery services and billing will remain the responsibility of the local utility as they own the power lines and wires that keep the lights on.