Electricity Deregulation Doesn't Work in the Real World

August 05, 2013

Jay Heiler, head of the Arizona Power Consumers Coalition, penned an opinion piece in today’s Arizona Republic (“Electricity deregulation doesn’t work in the real world”) criticizing the Arizona Corporation Commission’s exploration of electricity deregulation, saying it will increase electric bills and jeopardize reliable energy delivery.

In it, Heiler says:

“In light of California’s disastrous experience with electric deregulation — rolling blackouts and roiling price spikes — the ACC wisely abandoned its efforts [in the 1990s] to create a similar system here. Other states pressed on despite the risks and structural deficiencies. They have reaped volatile rates, increased customer complaints and dwindling energy reserves.”

He discusses the Texas experience which has created power capacity challenges and cost ratepayers more than $10 billion, as well as recent $400 million-plus federal fines for J.P. Morgan for allegedly manipulating California and Midwest energy markets in 2010-2011.

You can read more of Heiler’s editorial here.