Before Deregulation
Before the Electricity Generation Customer Choice and Competition Act became a reality, all of the electricity purchased or transmitted in a specific region was sold by one company. In the Philadelphia region the company that supplied electricity locally is PECO Energy. PECO held exclusive rights to operate a monopoly in this region and consumers did not have the option to buy from any other electric supplier.

Before deregulation electric utilities were in charge of the generation, transmission and distribution of electricity. They operated as a regulated monopoly, and had the sole rights to sell electricity in a particular region.

Across the state of Pennsylvania there are 9 electric utilities that were operated under a regulated monopoly. This means that the utility supplied the power, read the meters, fixed any other line related problems, and determined what the power sources of electric generation would be. Because electricity consumers had no option to switch companies, utilities were able to install any facilities that they felt were necessary, with little input from residents and consumers.

Below is a map that illustrates the service territory for each electric utility in the state of Pennsylvania.




After Deregulation
Now that the Electricity Generation Customer Choice and Competition Act has been fully implemented in Pennsylvania (full implementation was on January 1, 2000) every resident has the option to choose the company that generates their electricity.

Generation is now competitive. Electricity consumers can shop for a new generation supplier. The local utility is still responsible for delivering that electricity through the transmission and distribution lines.

The electric utilities that once operated as regulated monopolies are now referred to as "electric distribution companies". They are responsible for the transmission and distribution of electricity to homes and businesses (the poles and wires).

Because the regional monopolies are still responsible for the transmission and distribution of electricity, distribution will be as reliable as it was before.

Your current distribution company (old utility) will still be in charge of:

• Problems with bills
  
• Downed power lines
  
• Power outages
  
• Billing complaints or concerns
  

Electric distribution companies will also be referred to as the "provider of last resort". The provider of last resort is obligated to provide electricity service to any customer who looses service from any new electricity supplier, or are denied service from any new supplier.