Natural gas heats our homes, heats our water, cooks our food and dries our clothes. Natural gas is also used to generate electricity and supplies around 38 percent of the total electricity generated in the United States. Natural gas usage accounts for 32 percent of the United States total energy consumption.
Natural Gas Consumption
Consumption Sector | Amount Used |
Residential | 15% |
Commercial | 11% |
Industrial | 33% |
Electric Power | 37% |
Transportation | 3% |
Deregulation of Natural Gas Service
Until the 1970s, federal oversight that limited pipelines and price controls from states kept companies out of the natural gas market. In 1978, Congress passed the Natural Gas Policy Act that bypassed local regulations and incentivized new production. The Natural Gas Wellhead Decontrol Act, passed in 1989, deregulated natural gas pricing and opened the door for states to allow deregulation of natural gas service.
Currently, eighteen states allow for deregulated natural gas service and seven of those states also allow for deregulated electric service.