Power deregulation brought few bargains (or how high can your rates go?)

[UpInArms]

http://news.yahoo.com/s/ap/wired_for_failure

BENTON, Ill. - This wasn't supposed to happen with deregulation. Electric bills were supposed to go down. Instead, Ellie Dorchincez can almost see the dollars evaporating every time she turns on the lights or opens the freezer at her small Farm Fresh grocery store.

Her electric bill, which used to be about $800 a month, has jumped to $1,800. She's shut down a large freezer of frozen treats and now closes the store an hour early to cut costs but fears she still may have to raise prices and lay off some workers.

"I'm just trying to figure any way that I can right now to keep my business afloat," Dorchincez said. "My life is at stake here."

The cause of her distress is a common problem: the failure of deregulation to deliver its promise of lower electricity prices. In many states, it's had the opposite effect with sharply higher rates — 72 percent in Maryland, up to 50 percent in Illinois.

Not one of the 16 states — plus the District of Columbia — that have pushed forward with deregulation since the late 1990s can call it a success. In fact, consumers in those states fared worse than residents in states that stuck with a policy of regulating their power industries.

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(It was too late to post this in LBN, but it is important that everyone know what a failure this deregulation of life's necessities has been. The next big one will be water.)