In the early 2000s Minnesota lawmakers met to discuss the possibility of deregulating the energy market in the state. After lengthy debate it was decided that Minnesota would not deregulate, based in part on the limited energy supply in the state. At the time, growth across the United States was substantial, while the energy supply was only shrinking. With a high potential for area blackouts, lawmakers decided nothing should be done about deregulation, until they solved the issue of energy generation in the state.

However, several key factors in energy production now make the point moot. Alternative energy sources have boomed over the past decade, contributing additional electricity to the power grid. In fact, two nuclear plants make up almost 25 percent of Minnesota's electricity supply and wind energy accounts for more than 9 percent.

Furthermore, a decline in natural resources is not currently an issue. Oil and natural gas resources took a dramatic turn thanks to hydraulic fracturing. This horizontal drilling process has allowed companies to find and extract more oil and natural gas from under the earth's surface. This major discovery could not only solve the energy crisis in the United States, it could relieve the country of dependence on foreign resources.

What is energy deregulation?

In the early 1900s the government created a regulatory framework that gave utilities a monopoly over the supply and delivery of energy in Minnesota. To this day, the Minnesota energy marketplace still operates under these laws. To keep prices from sky-rocketing the government regulates rates the utility can charge, but residents still lack options when it comes to their energy supply.

Several states have already pulled the plug on government restrictions and opted for deregulated energy markets instead. In these states, government rate caps were removed in favor of a competitive market to drive down prices. The energy process was split into three parts: generation, supply and delivery.

• Generation
  Power plants and natural gas providers create and/or transmit energy to the local utility and eventually to consumers.
• Supply
  Deregulation introduced retail energy suppliers to the market that are able to purchase energy wholesale from the generation company and sell it directly to the consumer. Residents of deregulated areas can choose to purchases their energy supply by comparing suppliers to find the best plans, rates and customer service options for them.
• Delivery
  The local utility is removed from the supply process and is only responsible for delivering a customer's energy supply and maintaining the infrastructure of pipes and power lines that are used to transport it.

Perks of deregulating Minnesota

Aside from putting a/n end to the utilities' monopoly on energy and eliminating government intervention in the energy market, there are a number of perks to deregulating Minnesota. One of the biggest advantages of deregulated markets is the opportunity for cheaper energy rates. Each deregulated market boasts of many retail energy suppliers, such as energyproviderstexas.com, which must offer competitive pricing to attract customers. If Minnesota was deregulated, residents would get to choose a supplier based on the best rates it could offer.

Another incentive to deregulate the state is the promise of better plans. Local utilities can only offer so much to their customers, but retail energy suppliers can offer different options such as fixed-rate or variable-rate plans.

Retail energy suppliers offer innovative customer service options and perks for those who choose service. For example, a few suppliers offer rewards programs for things such as on-time bill payment or referring a friend for service. Others may offer 24-hour customer assistance or online account management.

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