What effect has deregulation had on Freeport Electric customers?
Deregulation of the electric utility industry and its reorganization has not progressed easily or inexpensively in New York, or any other state. Fortunately, the Freeport Electric territory is somewhat insulated due to a long-term hydropower supply contract and local diesel generation. The New York Independent System Operator, the essential, quasi–governmental agency, has added a level of cost and bureaucracy to the electric utility marketplace that did not exist before deregulation. The NYISO's year 2000 operating budget was $75.3 million and was projected to be $105.5 million in 2001. Freeport Electric customers have been paying their share of these costs through the fuel cost adjustment portion of their bill since November 1999. This, coupled with the higher cost of fuel, has caused the Freeport Electric customer's average bill to increase by 16% over prior year's costs.

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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?