Why RESA Supports
Did you know that when you choose a competitive supplier, you will still have that energy delivered by your traditional utility company? As a consumer, when you elect and authorize the competitive energy supplier to provide your service, the reliability of your service will remain the same. The local utility company will continue to be responsible for any power outages experienced or other emergencies.
Like choosing a cell phone service provider, selecting a competitive energy supplier requires a contract between you and the supplier. Be sure to read and understand all the terms and conditions of your contract.
There are several ways to enter a contract with a retail electric or natural gas supplier, such as:
While it can be as easy as contracting through one of the three methods above, keep in mind that written contracts, especially those that result from direct solicitation, sometimes also require third-party verification for your protection.
Consumers Should Have a Choice
How Retail Energy Competition Works
The electricity and natural gas bill that retail energy customers receive consists of three main costs – transportation, the distribution of the energy, and the energy itself (which is typically the largest contributor to the ultimate price customers pay).
In states that allow customer choice for electricity and natural gas, the pipes and wires that deliver the energy to retail customers (the transportation and distribution costs) are still owned and operated by traditional monopoly-protected utility companies. Those costs are still price regulated, and the utilities receive rates reflecting their costs plus a reasonable profit. It is the energy commodity – the electric energy or natural gas – that is competitively priced.
In states with retail competition, customers still receive one bill for their electricity and natural gas, but they have a choice of competing retail energy suppliers vying for their business. This is driving economic value for the customer’s energy dollar and innovation in pricing and services that did not occur under monopoly-protected price regulation.