Though it's not surprising, it is still unsettling to see the number of businesses that are simply leaving New York due to the massive rise in energy prices. The deregulation of electricity has definitely helped the state's economy and given businesses a reason to stick around.

In the beginning the power companies were provided a territory upon which they were permitted to lay their grids and provide power to customers. Such territories were state regulated, and the federal government had very little say. Such companies were held responsible for the provision of hookups, power generation, and maintenance, though as you've seen, the maintenance thing doesn't always work out.

The majority of power was generated through hydropower or by burning fossil fuels, or even using a nuclear plane. The biggest problem with this is the fact that it costs money to generate electricity, and therefore the customer will be charged. The prices in each area are different, and customers were forced to pay the prices of that particular utility company, and customers usually had no say in the matter.

The Public Service Commission was the one that oversaw all of the power company's actions, but many though that they didn't do enough. Some went as far as to claim that the power company actually supported the ridiculous power prices. Businesses left the state in hopes of finding better prices.

With the adoption of deregulation moves by New York State, a new window of opportunity has opened for businesses located within the State. The consumer is no longer limited to just one supplier located within the given territory. A business is now permitted to shop around to find a supplier outside a given area that can produce and deliver energy at a lower cost, potentially cutting the cost of doing business. This is true even if a supplier is located in another area, including out of state.

Keep in mind that a power bill for the consumer has two different parts to it. First of all there is maintenance, and then there is delivery. Delivery is measured in the cost per kilowatt power, and the delivery might have a savings because of lower charges by the supplier. The local utility will always set the delivery charge. This means that a power bill will never be absolutely zero, there will always be a charge on the bill.

Now that deregulation is a reality, business's are free to use any company they want for power, and they can shop based on the rates provided. Not only that, the road is now clear for more competition in the power industry. Suppliers can provide power across the state lines, and federal guidelines have been invoked, meaning that customers will now have much more support and protection than they did when electricity was just a local service.