Energy deregulation in the United States was approved by federal
legislature in 1998. However, this new law left it up to each
state to enact its own deregulation laws. The effect was that
larger, commercial companies were able to take a small share of
the previously federally regulated wholesale energy markets.
However, the states were slow in allowing deregulation for
retail and consumer energy markets. It was not until late 2006
that there seemed to be a glimmer of action.  Texas passed
deregulation of most of its electricity markets and a parts of
its natural gas markets in 2007, thus allowing the long awaited
third party competition and subsequent rate reductions in the
service areas covered by incumbent Energy Service Companies
(ESCOs) Reliant Energy, TXU, WTU Retail Energy, CPL Retail
Energy, and First Choice Power. Consumers now had the ability to
choose a different ESCO to get lower rates on their electricity
and natural gas utility bills.  New York followed soon after
Texas, allowing deregulation in