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Getting Electricity Deregulation Right: How Other States and Nations Have Avoided California's Mistakes

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Publication Date: April 2001

Publisher(s): Reason Foundation

Author(s): Lynne Kiesling

Topic: Energy (Electric power)

Type: Report

Coverage: Texas California Pennsylvania


Of the states that have deregulated wholesale and retail electricity markets, Pennsylvania has had the highest rate of customers switching to alternate generation providers, and Pennsylvania's customers express the highest satisfaction with their electricity services in the United States. Texas also appears poised to succeed in realizing the benefits of electricity deregulation. While its legislation only went into effect in June 1999 and its pilot program to test the process starts in June 2001, many already view Texas as a blueprint for deregulation success. California's experience is in no way representative of the consequences of deregulation; in fact, when done
well, these success stories of other states show just how much benefit both consumers and innovative sellers can gain from electricity deregulation. Electricity deregulation can deliver consumer choice, consumer savings, and a business climate that encourages entrepreneurship.