12140 Wickchester Ln Suite #100, Houston, TX 77079

How Utility Deregulation Benefits Connecticut Electricity Customers

If you live in Connecticut, then you probably live in a deregulated electricity area. According to the New England Energy Alliance (NEAA), that’s a good thing, both for electricity customers and the environment.

What is electric deregulation?

A national movement to deregulate public utilities, commonly referred to as electric restructuring, began in the early 1990s. Prior to then, most electric utilities were monopolies, regulated by state utility commissions. The utilities handled everything. They generated and/or bought electricity, sold it to customers, and delivered it to customers’ homes.

The movement behind deregulation suggested that the utilities should be broken up. Under deregulation, other companies would be allowed to generate electricity, and still, other companies would be allowed to buy electricity from the generators and sell it directly to customers. The role of utilities would change. In deregulated markets, the utilities would simply take electricity from the generators, transmit it to the grid and deliver it to customers’ homes. The utilities would only charge for the distribution of electricity, although they could still sell electricity “at a price set by state regulators” if customers didn’t want to switch to a competing electricity supplier.

Deregulation was meant to encourage competition among multiple electricity suppliers, which would ultimately drive down energy prices and help customers reduce monthly electric bill costs.

Connecticut began to deregulate in 1998 when the state legislature passed a law to restructure the utilities. On Jan. 1, 2000, the law went into effect, and utilities such as Connecticut Light & Power (CL&P) and The United Illuminating Company (UI) were broken up and competing suppliers were allowed to enter the market.

Now, over ten years later, Connecticut electricity customers have more choices and greater access to cleaner energy than ever before, according to the NEAA.

The Five Main Benefits of Electric Deregulation in Connecticut

According to an NEAA report released last year, it is clear that the competitive marketplace is working to the benefit of both customers and the environment. The report cited five main achievements since deregulation began, including more power, more choice, higher efficiency, cleaner air, and the development of new clean energy resources.

More Power

As of last April, more than 4,000 megawatts of new electricity generation facilities were in the works in Connecticut, thanks to deregulation. The NEAA noted that when all of that power comes online, it will increase the state’s electricity output by 50 percent and will further boost competition, reduce prices, and create jobs.

More Choice

From 2005 to 2010, the percentage of Connecticut electricity customers who bought their electricity from competitive suppliers grew by triple digits. By the time the report was issued, 35 alternative electricity suppliers’ investing substantial capital and employing hundreds of residents’ served 20 percent of all state customers and supplied half of all electricity sold in the state.

Higher Efficiency

Deregulation has paved the way for consumer-funded efficiency programs provided by utilities that have conserved more than 400 million kilowatt-hours of electricity a year. That’s enough to power over 47,000 homes annually.

Cleaner Air

Deregulation has also spurred the construction of highly efficient natural gas power plants for generating electricity, as well as a switch to cleaner fuels in existing power plants. As a result, fewer greenhouse gasses have been emitted. Between 2005 and 2010, carbon dioxide emissions from power plants decreased by 20 percent. Additionally, nitrogen oxide fell by 62 percent and sulfur dioxide by 77 percent.

New Clean Energy Resources

Because of deregulation, many new types of ‘greener’ electricity generation technologies are being developed. Hydropower, wind energy, and biomass are all contributing to the state’s goal of generating 27 percent of Connecticut’s entire energy production by the year 2020.


NEEA: CT Benefits From Electric Deregulation, Hartford Business Journal, Apr. 28, 2010.

Connecticut Light & Power, CL&P History.

Translate »


Here’s a chance to get 200 points every month in Spark Energy Rewards*

Points can be used on local shopping deals, dining, daily deals, travel,
and even gift cards. Terms for the rewards can be found here.

*Certain Terms and Conditions apply. This offer is available to first-time customers only. Customers must sign up for a fixed-rate energy plan. The plan may include a monthly service fee depending on the product. Use promo code which is showing above to qualify. Rate expires at the end of the term. Canceling or changing supply service prior to the end of the fixed-rate term may subject the customer to an early termination fee based on the product details. To be eligible to receive Spark Energy rewards, customers must enroll in a fixed term plan and maintain an active Spark Energy account in good standing (no past-due balance owed) for 45 days after the beginning of service. May not be redeemed for cash. This offer is subject to change or cancellation without notice prior to customer acceptance. This offer is nontransferable and cannot be combined with any other offers. This offer applies to services areas where Spark Energy LLC is active. The offer expires on 12/31/2021. See the Terms of Service and Electricity Facts Label (applicable only for TX) at www. SparkEnergy.com for more details.
© 2021 Spark Energy LLC. All Rights Reserved.