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Backyard Revolution Review

por Editoria RVQ (2019-03-28)

The United States is in the middle Backyard Revolution of one of the biggest wealth transfers of wealth it has ever seen since the deregulation of long distance calling. This shift in wealth is seen in the deregulation of energy. What is energy? Energy can be described multiple ways but for the purposes of deregulation, energy is defined as power that is transferred from the environment and converted into electricity and gas to be used for electricity and heating. How does it work? Local utility companies own the grids that bring power to buildings. Prior to the new regulations, they would buy the gas and/or electricity from a source that produces for an undisclosed price, provide the building energy, then charge the responsible party for that energy. Considering the price that the utility company paid for the energy was undisclosed, consumers were paying a considerable mark up. For example: Electricity is measured in kilowatts. The utility company would purchase it from producer for $0.5/kilowatt, then sell it to the consume for $0.15/kilowatt. Consumers would pay the 300% mark up in addition to taxes and fees associated with being on a power grid. The utility companies had the power to choose where energy was purchased from. If the utility company was able to purchase at a low price, those savings were not necessarily passed on to the general public. The government decided that these practices are not ethical and stepped in to make changes. With deregulation, consumers are now allowed to pick who the utility company purchases energy from. The utility company still owns the grids and still brings the energy to the building. The consumer can now choose which company based on lowest price. Competition within any industry drives prices down which means savings for the consumer and a more level playing field for up and coming producers.