Super Energy Efficiency Blog

Electric Deregulation : Part 2

We left off with the question : why is energy regulation or deregulation  important to you, the homeowner?

Utility companies are a unique form of commodity. Electricity or gas for heating, air conditioning, and lights are life sustaining services. Unlike any other business, public utilities have a guaranteed market.

In most cases, consumers do not have a choice for there natural gas or electricity supplier. Regulation was designed to insure a fair rate structure, and reliable supply of electricity and gas. In return, the holding companies could count on a good return for their stock holders and stable business levels. And the 1935 PUHCA kept utility holding companies from using the profits they made from consumers to invest in riskier businesses.

How did PUHCA come about? After the stock market crash of 1929, many utility companies were far in debt with their other investments. When banks called in their loans, the utility companies failed. The consequences of the failures fueled the Depression.

The National Energy Policy Act of 1992 opened the electric industry to competition, which meant....

Electric Deregulation : Part 1

What would you do if you opened your utility bill next month, and there was a 25 % increase in your rate?

The truth is a lot of homeowners are getting hit with exactly that kind  of rate increase. In fact, the hidden problem in the current housing crisis is electric bills can get so high; it’s as if homeowners now have a second mortgage payment.

And there are more and bigger increases expected this year in at least fifteen states, as the deregulation of utility companies continue, rate caps come off in certain states, and the cost of oil continues to rise.

How can this happen?

The answer to that is...