How Deregulation Works
Deregulation means exciting new choices for consumers
What Deregulation of Electricity Markets Means to Consumers
Deregulation means exciting new choices for consumers. Consumers continue to receive the same reliable service from their utility, but they simultaneously benefit from the innovation, customer service, and competitive pricing that a deregulated market fosters. We continue to lead the way in providing electric consumers these benefits.
What You Need to Know
Your electric bill is comprised of three major components.
- Energy: The cost of the electricity you consume
- Delivery: The cost of delivering the electricity to your location
- Taxes: State and municipal taxes
Utilities purchase energy for customers from the same wholesale market that AEP Energy does; however, most utilities purchase energy on a periodic basis that may vary from state to state.
In a deregulated market, the utility no longer owns power plants nor do they profit by selling you energy. Instead, utilities profit on the delivery of electricity to your location. To clarify, the cost you pay to the utility for delivery is the same whether you purchase energy from them or AEP Energy
The rate you pay for electricity is the result of competitive and intelligent purchasing strategies which occur anytime throughout the year. The utility's energy price can vary depending on what season it is, time of day, or how much you consume. We can provide pricing tailored to your needs and preferences.