Deregulation: Work to Make it Work!

Deregulation: Work to Make it Work!

Environmentalists and other advocates of energy efficiency are justifiably nervous about a deregulated electric utility industry. Under the existing (regulated) system, we as a society have the right, at least in principle, to require that electric power providers act in our common interest. The free-market advocates, on the other hand, want to leave power generation to the marketplace—what is good for business is good for all of us.

Like it or not, however, deregulation seems to be coming, and coming fast. And the reality is that there is no one simple formula for how electricity might be produced and sold within a free-market system. Deregulation is coming in many different flavors, and important decisions are now being made at the state, regional, and national levels that will affect both the short- and long-term impacts of these changes. Unfortunately, in many areas the environmental community is hardly being heard over the din of industrial power users and shareholders clamoring for lower prices and protected profits.

If we want to see deregulation proceed in a way that enhances—rather than sacrifices—environmental protection, it’s time to get involved in the process. Most national and many regional environmental groups are formulating positions. They can fill you in on what the issues are in your area and how you can get involved. Deregulation is complex, but we can’t afford to leave this one to the full-time lobbyists. There is too much at stake.

– Nadav Malin