Written By: David Cosseboom | Updated On: February 4th, 2025
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 42 percent of the total electricity generated in the United States. Natural gas usage accounts for 36 percent of the United States total energy consumption.
Natural Gas Consumption
| Consumption Sector | Amount Used |
| Residential | 14% |
| Commercial | 10% |
| Industrial | 32% |
| Electric Power | 40% |
| Transportation | 4% |
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.
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States with deregulated natural gas service
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Read More About Natural Gas
- Understanding the Difference Between Fixed & Variable Rates
- Smart Ways to Reduce Your Gas Bill and Save Energy
- Everything You Need to Know About Smart Thermostats
- Your Guide to Tankless Water Heaters
- Get Assistance Paying Your Utility Bills
About the Author
David has been an integral part of some of the biggest utility sites on the internet, including InMyArea.com, HighSpeedInternet.com, BroadbandNow.com, and U.S. News. He brings over 15 years of experience writing about, compiling and analyzing utility data.