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Electric

 

It is hard to determine exactly how much stranded cost will be. They have been estimated to be anywhere from 10 billion to more than 500 billion. And stranded costs may be higher in some parts of the country than in others. According to Research Data International, 86 percent of the stranded costs lie in 10 states that have 43 percent of the electricity market. California is at the top of the list, followed by New York, Texas, Illinois, Pennsylvania, New Jersey, Ohio, Georgia, Massachusetts, and Connecticut. The utility companies want to be able to recover most of if not all of their stranded costs, and if they are not able to electrical prices may be higher because of it. Another problem that has arisen is the concern over possible environmental and social protections built in through regulation would be lost. The Utility Workers Union of America believes that a competitive market would give profit driven companies an incentive to promote consumption, which would undermine many of the conservation programs that are promoted today. I think that we should not rush to judgement on these problems. Many states are implementing deregulation, and we will see exactly what happens and doesn't happen during these experimental times. Similar concerns were raised before the airline industry was deregulated, but it worked out just fine. There are 3 main objectives that electrical utility deregulation hopes to achieve. First and foremost are lower utility rates. Granted that utility rates are relatively low at the present time, with deregulation there exists the potential for them to be even lower. Businesses would have the most to gain from deregulation because of the large amounts of electricity that they utilize. They would be able to use the money saved on other methods or capital to better serve their customers. The everyday household would benefit because instead of having to purchase all the services from a utility company, they would have the option to purchase only some of them, or choose a different company of their liking.


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