Understanding deregulation in New York
New Yorkers have been able to choose their energy provider since 1998, the year the state government decided to deregulate the electric portion of New York’s energy market. This decision meant that utility companies no longer had a monopoly on the areas they served. Instead, competition between energy service companies, also known as ESCOs, was permitted.
Market competition in New York helps reduce electricity rates for residential and business customers because providers have to compete for customers, encouraging them to offer the most attractive rates. The deregulated marketplace is overseen by the New York Public Service Commission (PSC), which approves licenses for ESCOs and regulates utility prices. It also runs the New York Power to Choose program. This initiative informs residents about their energy choices.