Utility De-Regulation is being carried out and implemented on a state to state basis. Currently 21 states have enacted final restructuring statutes (CA and PA are two of them), 10 have bills pending, and 15 have task forces working on the issue.
There is also Federal Legislation in the works, but it appears that the Senate Energy and Natural Resources Committee cannot agree on several key issues. These include the concept of legislating retail reciprocity, which would prevent an energy company in a state that has been deregulated from selling energy in a state that has not opted to deregulate; and mandates for energy companies to purchase power from renewable fuel sources.
Electricity is a supply and demand commodity, California has the Power Exchange in which wholesale electricity is bid on, this will lead to market volatility. You also have to take into consideration the condition of CA's generation and transmission systems, which I'm not aware of, but the older the distribution system, the higher the maintenance costs.
You may want to look into aggregated buying (buying group) or into off-peak hour times and rates, talk with someone from your states utility commission, they should have information available to consumers on rate protection and purchasing options.
Greg Borr
Ready Theatre Systems