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Any Hope for Power Deregulation? |
| Section: CURRENT ISSUES / ANALYSIS |
| Author: Hil Anderson |
| Publication: The world & I online |
| Issue Date: 1/1/2005 |
| Size: 1,031 Words, 6,451 Characters |
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The United States electricity market was seen as a deer caught in the headlights, when a report out of Washington indicated that it was unable to move forward to a genuine condition of deregulation or backward to the more-orderly and protective times.
The latest look at the U.S. electricity grid comes from the Cato Institute, which, despite its proud libertarian leanings, sees enough inherent pitfalls and confusion to make the goal of complete deregulation of the market highly unlikely. "The poor track record of restructuring stems from systemic problems inherent in the reforms themselves," authors Jerry Taylor and Peter Van Doren said in the analysis of electricity deregulation that was released recently.
The authors said that while deregulation might offer great benefits to consume...
. . .
...t solution might be to go backward, to accept the regulatory oversight of electric power companies ... in return for management of the transmission [grid] through vertical integration."
In other words, the electricity market may be all too important to the well-being of the United States to leave to the invisible hand of an unfettered deregulated market.
© 2004 United Press International
(812 of 6,451 characters)
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