The 10 myths against retail competition in electricity
- Electricity Consumers Resource Council, Washington, DC (United States)
Electricity rates are too high in most of the US. Now is the time to restructure the electric utility industry and for the creation of a fully competitive electric services industry. Ten questions, challenges and ruses are often posed to supporters of a more competitive electric services industry that argue against the workability of competition in this industry. Electricity, they claim, is different. But their counterarguments are only myths. This paper discusses and refutes the following ten myths. (1) Existing industry is already efficient. There are no additional benefits to be gained from retail competition. (2) Competition will harm reliability. (3) Benefits of competition can be obtained in the wholesale market. (4) State commissions do not have the authority to create a competitive electric services industry. (5) Minor reforms to the regulatory process will accomplish the same objectives as competition. (6) Only a few large customers want choice. Special contracts will provide the same benefits without restructuring the industry. (7) Performance-based regulation, including the user of price caps, can produce the same efficiencies as competition. (8) Residential customers do not want choice. (9) Competition will make achievement of certain social objectives such as environmental protection impossible. (10) You do not want competition, you want PoolCo.
- OSTI ID:
- 452267
- Journal Information:
- Iron and Steel Engineer, Journal Name: Iron and Steel Engineer Journal Issue: 2 Vol. 74; ISSN IRSEA5; ISSN 0021-1559
- Country of Publication:
- United States
- Language:
- English
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