Hello--
I have carefully researched your questions and have the answers.
The advantages of deregulation of utilities is to provide competition
to consumers. When you allow more than one company to enter a
marketplace, this allows consumers to have more choices as to which
companies with whom they can conduct business.
The downside of utility deregulation is that it gives more companies
more power over who they serve and where. Under deregulation, if
there's a tough market that a company knows it can't serve, it can
leave. California officials ordered utilities to "sell off their own
generation capacity and forced them to purchase all of their power in
a centrally controlled Power Exchange (PX), which is now bankrupt,"
according to the Reason Public Policy Institute. "These conditions,
blended with a tight natural gas and wholesale electricity market,
created a recipe for disaster," the organization claimed. You may read
this full article online at http://www.rppi.org/041901a.html
A good example of how electricity deregulation hurt consumers in
California can be found in the story of Sandy Galpar of San Diego. The
electric bills for her business skyrocketed in a matter of months. You
may read this article online.
The link is http://www.enn.com/news/enn-stories/2000/08/08122000/dereg_30442.asp
You may read more about electric deregulation in California at the
Public Citizen web site. The link is
http://www.citizen.org/cmep/energy_enviro_nuclear/electricity/deregulation/
You may read a number of interesting articles about this topic linked
to Yahoo! This information can be found at
http://news.yahoo.com/fc?tmpl=fc&cid=34&in=business&cat=utility_industry_deregulation
To conduct this research, I searched the following terms: "California
deregulation," "electricity deregulation"
I hope this helps!
darrel-ga |
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