Deregulated energy

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I thought The US government deregulated electricity. In the city I live in we have a public affairs unit that claim they go out and negotiate for a lower utility cost that is then passed on to us. I have recenly learned a couple of years ago they had gone out and signed a 30 year contract with an out of state company to provide electric to us. I thought that there a some kind of federal law passed that allowed people to go out and get there own electricity if they feel they are getting a better deal. Can anyone please elaborate on this and explain how a hand full of people who get kick backs that can't be proven (or can they) can negotiate 30 year deals with electric cpmanies out of the state. Thanks.