What is the state of deregulation in New York?
In mid-November 1999, the New York State electric utility marketplace was deregulated. Deregulation was supposed to bring lower costs to the electric utility industry and its customers. For the majority of the customers located in New York, including Freeport Electric customers, so far we have experienced the opposite effect. We have seen the cost of electric on the wholesale market increase steadily over the past 14 months. Currently our energy costs are up 16.5% over 1999. this is not unique to Freeport, but is being felt all over the state. As a comparison, customers in New York City saw their costs go up as much as 50% this past summer. Freeport is fortunate because it has its own generation. Freeport runs its generation when market prices are higher than generation costs. Using this approach, Freeport Electric saved its customers approximately $600,000 in the year 2000.

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1. What is electric deregulation?
2. What is the state of deregulation in New York?
3. Who monitors energy prices in this new market?
4. We hear a lot of discussion about deregulation not working in California and other western states. Why isn't it working?
5. What effect has deregulation had on Freeport Electric customers?
6. Has Freeport Electric raised its electric rates?
7. If my rate has not increased, then why is my electric bill increasing?