A co-op utility (electric cooperative) is a member-owned electricity provider that serves specific communities or regions. Many co-ops do not participate in retail electricity choice, which can prevent customers in co-op territories from switching to third-party suppliers, even inside a deregulated state.
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Default service is the electricity supply option customers receive if they do not choose a competitive supplier. In deregulated markets, default service is typically provided through the utility (or a utility-run program), and rates may change periodically. Customers may be able to switch away from default service to a competitive supply plan where allowed.
Electricity is a form of energy resulting from the flow of electric charge. It powers homes, industries, and devices, making it essential for modern living. The flow of electricity is typically generated through various sources such as fossil fuels, nuclear power, and renewable resources like solar and wind.
A municipal utility is an electricity provider owned and operated by a city or local government. Municipal utilities often operate outside retail electricity choice programs. That means customers served by a municipal utility may not be able to switch suppliers, even if they live in a state that has deregulated areas.
PUC (Public Utility Commission) and PSC (Public Service Commission) are state agencies that regulate electricity markets and enforce consumer protection rules. Depending on the state, they may oversee utility delivery rates, approve supplier participation, publish market rules, and provide public resources related to electricity choice and customer rights.
A regulated market is an electricity market where a single utility (or public power authority) provides both the electricity supply and delivery service to customers. Because there is no retail competition, customers generally cannot choose a third-party supplier, and rates are typically set or approved by state regulators.
A service territory is the geographic area where a specific electric utility is responsible for delivering electricity (the poles, wires, meters, and outage response). In states with retail electricity choice, eligibility to shop suppliers often depends on the utility’s service territory, not just the state. Two customers in the same state may have different options depending on which utility serves their address.
Many electricity bills include two main components: supply and delivery.
This “split” is why customers can often switch suppliers without changing their utility.


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