The Upside of Utility Deregulation

There is a positive outcome from the deregulation of utilities that as fostered during the Reagan Administration. That deregulation made it possible for competing gas suppliers and traditional electricity suppliers to compete and allegedly lower the cost to consumers. There was a secondary and some say an unintended consequence to that deregulation.

At the time of the changes to laws and regulations no one had ever heard of a commercial-grade solar or wind sourced supplier being able to generate electricity and move it to market.

What the deregulation process created was the ability for a legacy utility company to continue to deliver the commodities and charge a delivery fee separate from the actual commodity. The original idea was that small and competing providers could sell their commodity to the utility and they would blend it in with their own material. Then the idea of selling directly to the consumer took over.

Today, many Americans are able to choose the electricity supplier they want to buy from. Such providers may source some or all of their electricity from the wind or solar sources. Best of all the legacy utility company will deliver for the same fee as they do their own electricity.

A quick search of the Internet using ones zipcode can determine if there is the opportunity to buy electricity from an alternative source. Billing is transparent and seamless so there is no need to get two bills from two different companies. There is no investment to pay for. There are only yearly contracts to adhere to. While the price today may be a bit higher than coal, nuclear or hydro-electric power, the far smaller carbon footprint will make any ecologically sensitive consumer satisfied.

When I chose wind power I agreed to pay 0.5 cents more per kilowatt-hour.  That was a small price to pay for knowing that I was doing something good for the environment. Now I don't fret about leaving the light on.

Every time a consumer chooses to buy electricity from a wind or solar sourced utility provider they make it possible for that company to build more capacity. New alt sources are faster and easier to bring online. Similarly, as the technologies are improved, there is no need to stay stuck with the old tech.

Every time an investor with a conscious thinks about the choice between a legacy power source and a modern alternative source, he, she, they make it possible  to have energy AND a sustainable environment.

"That which brought us through the past century will not sustain us through the next one."

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Author's Note: The book cover images in the side margins of this blog are my own publications of eBooks available at both Amazon and B&N. Please take a moment and go to the sites and read about them. Then if you like it, buy one or two.