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Deregulation movement pushing ahead
© St. Petersburg Times, published February 4, 2001 If California is among the states leading the way in power deregulation -- for better or worse -- Florida is among those bringing up the rear. In between are more than two-dozen states in various stages of considering or acting upon deregulation of their vast electric utility markets. But a backlash is under way in many states, thanks to California's poorly executed plan to open up its power market. No state wants to deal with, or explain to citizens, its own version of California's rolling blackouts and skyrocketing power prices. So far, proponents of power deregulation can cite few consumer benefits in any of the states pushing for electric competition and consumer choice. A study to be released Monday by the Center for the Advancement of Energy Markets warns that competing suppliers of electricity have been slow to arrive in deregulated markets. And when they do, consumers are reluctant to change. The findings are similar to what has happened in the five-year aftermath of telecommunications deregulation. Local telephone companies, monopolies just like local electric utilities, are very successful in holding on to residential customers wary of signing up for such a key service from little-known or distant providers. Thanks to California, states such as Oregon, Nevada, Montana and New Mexico are rethinking their power deregulation plans and may delay action. A few bolder states, including New York and Pennsylvania, are moving ahead but with full attention to avoiding California's follies. In Pennsylvania, customers receive incentives to shop for power. Nearly 25 percent of electricity in the state is bought from competitive suppliers. This year, 300,000 customers who have not selected a power provider will be assigned one other than the local utility. Regionally, the least assertive states are in the Southeast. Why? Because electric rates tend to be lower in these states than in California or the Northeast. Also, the power companies that dominate the Southeast are especially influential in persuading state politicians to go slow. Alabama, according to a ranking by the Center for the Advancement of Energy Market, is dead last in its pursuit of deregulation. A year ago, that would have elicited jokes about the state. Now Alabama may look clever for its inaction. Recent coverageShocks to the system (January 26, 2001) Bush, commission seek ways to avoid power struggle (January 19, 2001) Trend could be a shock for power structure (January 12, 2001)
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From the Times Business report
From the AP
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