Title: Electricity Deregulation: The Downsides of Breaking Up a Monopoly.
Thesis: The deregulation of electricity will produce numerous negative .
results if states don't enact guidelines to supervise the production of electricity.
Purpose: To show that although the current public view on electricity deregulation is that it will lower the price of electricity, it will remain the same and in some cases rise. .
Introduction: Many issues must be finalized before states begin to deregulate electricity. Items such as stranded cost, distributing electricity, and who will receive the lowest prices as a result of deregulation all could increase preliminary assumptions about lower costs to the consumer.
I. Electricity is different than conventional monopolies.
A. Vertical bundling.
B. ISO.
C. California's solution.
II. Green electricity.
III. Possible price increase.
A. Minnesota.
B. Monatana.
IV. Stranded costs.
A. Paying for stranded costs.
B. Take years to pay for stranded costs.
Conclusion: Deregulation seems to be positive on the surface, but must be approached carefully before states choose to deregulate.
Deregulation began with railways, which was proceeded by airlines, telecommunications and natural gas. All of these deregulated services proved to be beneficial to the consumer. And on November 15, 1998, Pennsylvania was the second state to fully deregulate their electricity suppliers. Government controlled services, such as electricity, are slowly becoming deregulated. History shows that deregulation proves to benefit the consumer with cheaper prices as a result of competition. The combination of savings from the deregulation of railways, telecommunications, natural gas, and airlines resulted in 40 billion dollars worth of savings for the consumer (Crews 12). Deregulation allows privately owned companies to participate in providing a service by breaking up the monopoly which is already in place. .
Breaking the monopoly that is currently hold by electric suppliers could prove to produce negative results.