A ‘Deregulation’ Debate by the Numbers
From RTO Insider:
…Critics faulted the Times for conflating “deregulation” with organized RTO/ISO wholesale markets.
While 13 states and the District of Columbia allow most of their electric customers to choose their electric supplier, the Times appeared to be including as “deregulated” 21 states whose utilities participate in organized wholesale markets but do not allow retail choice, said R Street Institute energy adviser Josiah Neeley in a rebuttal published in Reason…
R Street’s Neeley also challenged the Times’ contention that competition leads to higher prices because of “profits taken in by energy suppliers.”
“Based on reading the Times article, you might be surprised to learn that monopoly utilities also make profits,” Neeley wrote. “Indeed, utility rates are typically set to give the utility a set percentage of profit based on their past investments. This, needless to say, does not encourage utilities to find ways to lower costs…”
