Did you know that residents can choose their electricity provider in certain markets? Retail energy markets give consumers the power of choice, which includes the ability to select a competitive energy rate. Read on for information about retail energy providers, green alternatives and where renters are finding the best deregulated energy sources to protect against rising electricity rates. Energy basics: the electric grid Most consumers take it for granted that the lights will turn on at the flip of a switch. However, the system that makes this possible is complex, involving power plants, transmission lines and various market participants. According to the U.S. Energy Information Administration (EIA), the U.S. electric grid comprises more than 12,500 utility-scale power plants that serve more than 160 million customers. Electricity isn’t easily stored, so grid operators and regional balancing authorities must constantly work to balance production and consumption. While supply and demand influence the price of electricity, regulators closely monitor and govern the market. Some authorities work to ensure grid stability while others focus on supplying and billing consumers for the electricity they draw from the grid. Under the traditional model, consumers depend on a single, tightly regulated provider in a vertically integrated power market. In deregulated energy markets (including 17 states and the District of Columbia), multiple energy providers compete to sell retail electricity to residences and businesses. This provides consumers the choice to shop among various retail plans, which offer competitive pricing, green energy options and other value-added services. Power in consumers’ hands With the freedom to choose the best deregulated energy sources comes the challenge of selecting the right plan. Understanding contract terms, rates, hidden fees and energy plan options can help businesses and residential energy users manage costs. So, how can renters make the...