The California experience shows that there is a whole lot of risk and not a whole lot of gain to deregulation at this time. There are some principles that North Carolina should adopt from these lessons. First, any move toward deregulation must contain protections, both in terms of quality and price, for residential consumers. Second, power companies should be able to explain their plans for furnishing power at times of peak demand, such as hot summer days. Third, any taxation of electricity should be based on usage, not price.
Deregulation promises deeper price reductions for large power users, such as industrial plants.
These large users shouldn't have all the benefit of lower taxes as well. Fourth, make it a requirement that electric providers don't call me. I'll call them. Dan Gerlach is the director of the N.C. Budget and Tax Center, based in Raleigh.