First Came Phone Deregulation. Is Electricity Next?

By Crudele, John | St Louis Post-Dispatch (MO), July 18, 1994 | Go to article overview

First Came Phone Deregulation. Is Electricity Next?


Crudele, John, St Louis Post-Dispatch (MO)


Get ready for television ads like this one:

"Public Service Electric, the best place to buy your electric power. Don't be fooled by competitors' promises of cheap electricity. We will not be undersold. Shop other electric companies first. Then bring us your lowest quote and if we can't beat it, Public Service will give you three weeks of free power for your air conditioner. Call now."

Think it's bizarre? Well, some experts believe the day is coming when you will be able to pick an electric company the same way you pick an airline, supermarket or telephone company.

There won't be multiple wires coming into your house. What will happen is that variouos electric companies will give you their pitches and you'll be able to decide which offers the best deal.

The electric companies won't be household names like Sprint, AT&T and MCI. But the companies could be fighting for your business just as hard as those telephone companies now are.

Your present electric company will be required to carry another company's electric power if you choose. Your present electric company will be paid something for the effort, but the bulk of your payment will go to the power company you picked.

"In the not-too-distant future, a utility may be required to allow its transmission facilities to be used for transactions between any power-generating entity and another utility," says Christopher Grant, a utility industry analyst with Standard & Poor's Corp.

"In turn, it would sell the power to the end user," says Grant. "Of course, the transmitting utility would be compensated for providing such service."

California is the leader in letting consumers pick their own power company. The California Public Service Commission submitted a proposal this spring that would, in stages, allow every electricity customer in the state to choose a power supplier by the year 2002.

The impetus for this change came from a law - called the Energy Policy Act - that President George Bush signed in 1992 just before he left office. The idea was to increase competition and bring down prices.

People eventually will get the chance to choose their electric company, says Craig M. Lucas, senior vice president of Oppenheimer & Co.

But that time hasn't arrived yet. Right now, whole cities will have to take over electrical lines before they can change utilities - an unlikely occurrence.

But utilities already are cutting prices to some industrial customers. So they are behaving like there already is a competitive market in at least one part of their business.

Other experts think that companies, not consumers, are likely to receive the bulk of the benefits from electric utility competition. There are a number of reasons.

First, big companies will have more clout in making deals with electric companies. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

First Came Phone Deregulation. Is Electricity Next?
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.