In the last few years, many states have begun to rewrite the rules to increase competition among electricity producers.
The idea is the deregulation of energy and electricity and allows consumers to choose where they buy their power (as they can choose their long-distance phone company). Local utility distributors would continue to deliver the power, for a fee, over their lines.
This form of energy deregulation is being decided on a state-by-state basis. Each state faces a different energy situation and is taking a different approach towards the deregulation of energy. In general, areas with high electricity rates (like California and the much of the Northeast) have been the first ones to move in this direction.