Energy Deregulation :: essays research papers

As we kick in witnessed the rolling blackouts and emergency alerts passim m both parts of our state of calcium within the past 12 calendar months, there is a question time lag to be answered. Why do we have an energy crisis when there be other states that are doing just fine? Before we come to any hasty conclusion, let us ask ourselves what happened to the energy policy during the middle 90s? During that period the electric utilities went from being highly regulated to being deregulated sideline the trend in successful deregulation of many industries such as airline and telecommunication industries. The concept that deregulation will bring more than competitive outlays and better services to the public, undermined the negative potentials of the free market system. deregulation bill must be abolished because it brings higher electricity prices, lower reliabilities of electricity, and in any case it threatens to drag down our economy along with it. First, we have seen a na tion-wide ontogeny in both wholesale and retail electricity prices. In calcium as an example, the wholesale prices increased seven times last social class compared to 1999 (Kahn and Lynch 13). The average residential electric bill almost multiply from $40 to $80 in San Diego when the SDG & Es retail price freeze ended in June 2000.1 match to Washington Governor greyish Locke, the whole energy prices have g oneness up from ten to 20 times the prices of a year ago (1). In New York, more specifically in New York City and parts of Westchester County which are one of the first areas in the country to deregulate retail prices entirely, the retail range have increased almost 30% (Eisenberg 47). This is bad when you consider that ones that are going to be most hurt from these unreasonably high electricity prices will be the individuals and families that are in the low-income bracket. Second, the reliability of electricity was compromised throughout many parts of our state, affecting both residential and business sectors. On June 14, 2000, about 100,000 customers were blacked out in San Francisco Bay Area (Kahn and Lynch 9-10). According to Lorenco Goncalves, the CEO of California steel industries, We were interrupted 14 times this month January compared to not once from 1987 to 1998. So many other industries depend on what we send themIf they cant depend on my products, they will buy them elsewhere (Wood and Sherer). These uncertain interruptions are causing a lot of damage in our economy.