Eulogies proliferate for "electricity deregulation." A typical death knell comes from the Tellus Institute, burying deregulation as a "failed experiment" that "did not" and "could not work." As with Sam Clemens’ reported demise, these eulogies are premature.
Even more off target are the lessons these obit writers derive from deregulation’s death: We must return speedily to the garden—the halcyon days of beneficent, fully integrated generation-transmission-distribution-retail franchise monopolies, operating under cost-of-service pricing for all of their services in every service territory.
Much of what these champions of the yesteryear call "deregulation" is no such thing. Rather, it has comprised different forms of regulation that overall rewarded consumers with large savings relative to the "good old days." Granted, "deregulation" has experienced missteps and mistakes, particularly in state retail programs, but these are well-recognized today and carry with them lessons for the
