The Issues
We
must tread lightly when it comes to regulation. Recent moves to
regulate the utility are shortsighted, politically motivated and
prey on our desperation for relief.
Remember: Nixon regulated the airlines and prices increased. Carter
regulated gasoline and prices skyrocketed and we had shortages. My
hero, Ronald Reagan, deregulated both and prices went tumbling down. We
deregulated long distance in ‘96 and prices plummeted.
The
bottom line is Freedom Trumps Regulation.
This
begs the question, “How do we apply this principle to electric rates?”
I asked, “Why does Vero Electric need a contract at all? Why not buy
from a different company yearly, or monthly or even weekly?” After all,
independent gas stations buy from the vendor with the best price.
Couldn’t we do the same? Was/is there some sort of complicated
engineering issue with our grid that prohibited this? It turns out
there is not.
If we
use the model of States like Texas, Pennsylvania and Illinois, we can
slash electric rates. They pay 1/3 what we pay during peak hours and
1/5 during off peak.
By
decoupling (separating) the production of electricity with the
transportation of electricity we can inject competition into the
electric market place. This is not an engineering problem; it is a
simple accounting procedure.
Producers of electricity deposit their electricity into a buying pool.
Electricity is transported to the consumer from that common pool. When
the consumer makes his or her choice, that company gets the credit for
the sale.
Next
door neighbors can purchase from different competing companies. One may
choose to support the local company, another may choose solely based on
price and another may choose to pay a little more to go green. Rates
will come down, service and innovation will increase as electric
companies now compete for customers.
No
longer will county residents have to cry “Taxation Without
Representation” because we all vote every time we purchase electricity.
When markets are free, everybody benefits!
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