The History of Electricity Deregulation

In the early 20th century, work began on building the infrastructure for delivering electrical power through the United States. For most of the rest of the century, one company was responsible for generating, transporting, and delivering electricity and natural gas to its designated area. This model provided stability in the nascent days of mass distribution, but over the decades, as home electricity and natural gas became the norm, the monopolies of local electric companies allowed prices to rise, with no end in sight.

 

Beginning in the 1970 and into the 1990s, a succession of rules enacted by our government allowed for the creation of independent energy producers and for the possibility of competition between them and the existing companies. This deregulation of the energy industry is taking hold state by state.

 

Some consumers in states where deregulation is currently in effect are not even aware that they have a choice of energy providers. Imagine you've always paid $4.00 for a loaf of bread at the corner store, and then one day you find out that the same loaf of bread is available at that same store for $3.75 and $3.50, and all you had to do was choose the loaf with the lower price tag. It is same with deregulation: You can tell your energy distributor that you want to get your power from a different supplier who offers it for less. You are guaranteed the same method of delivery, the same quality, and the same services.

 

It sounds simple, so why would you require the services of PCS? Buying electricity and natural gas in a deregulated market is not as simple as buying a loaf of bread; prices fluctuate and are often volatile, suppliers are willing to negotiate rates, and billing may not always be clear. PCS works as your advocate to identify the best solutions for each of your properties by responding to changes in the market to maximize your savings, negotiating with suppliers to meet your specific demands, and auditing supplier bills to ensure that you are getting everything you've paid for.

A Brief History of PCS

1989

Property Cost Systems began offering bill audit services to owners and management companies throughout Texas

1994

PCS did a utility audit for the State of Texas including universities, mental health, criminal justice and numerous other departments

1996

Began auditing bills for condo and homeowner associations to locate errors and obtain refunds

1998

Added audit services to corporate apartment owners

2001

The pilot program for electricity deregulation in Texas started and Property Cost Systems started helping audit clients save money by switching suppliers

2004

PCS added procurement services for commercial property owners including office buildings, retail centers, office warehouses, etc.

2006

Added procurement services for campus housing management companies

2007

Expanded into electricity and natural gas markets in other deregulated states

2009

Expanded services into Illinois for natural gas and electricity

2010

Began natural gas transportation services in Texas when the market opened to commercial users

2012

Added procurement services in additional deregualted states