A Primer on the Origins of the Competitive Power Market in the USA

A licensed electricity and natural gas supplier, RPA Energy provides a range of energy solutions combined with exceptional customer service. RPA Energy offers electricity, natural gas, and green energy products at competitive prices within the deregulated energy market.

The origin of the competitive natural gas and electricity markets can be traced back to the start of the 20th century when the Federal Power Commission (FPC) was established. This entity was initially formed in 1920 to provide monitoring for the federal government’s hydroelectric projects. However, after new laws were passed, the commission later expanded to provide oversight of electricity and natural gas markets.

Due to inadequacies in energy delivery in the 1960s and 1970s and the development of the energy crisis caused by the OPEC oil embargo, the US Congress organized the Federal Energy Regulatory Commission (FERC) in 1977 as a reformed version of the FPC. The new commission started to implement modifications in the natural gas market, changes that promoted the establishment of retail energy companies, and competition within the energy market. Rules for competition within the natural gas market were created by the FERC and put in place by 1978, whereas the competitive electricity market followed in the 1990s. At present, competitive energy retailers operate within most of the US.