They are all trying to convince us that deregulation will result in lower electrical rates for everyone. We should realize from the deregulation of the savings and loans, airline, and telecommunications industries that deregulation does not necessarily mean better service or consumer savings. Deregulation has usually meant that the biggest customers get the best benefits, with small business and residential consumers picking up the tab. Service may become less reliable as companies are pressured to make cost-cutting decisions to remain competitive.
Deregulation is likely to magnify the environmental damage caused by the electricity industry.
They are also likely to rev up old coal-burning power plants that are cheap but produce immense quantities of air pollution. At the end of 1996, the IUB staff issued a report urging a cautious approach to electric utility deregulation. The report cited a number of our concerns as issues that merit further study. So far, we have slowed the push for electric utility deregulation here in Iowa, but the fight is far from over. We are continuing our efforts to educate the public about the implications of electric utility deregulation for consumers and the environment.