Deregulation of electricity involves no such deleterious effects on consumers and would immediately increase American competitiveness relative to the rest of the world. Moreover, competition in electricity will have a one-time reduction in consumer prices of between 0.7 and 2.3 percent. Employment is anticipated to increase by 1 million to 3.1 million new jobs. Labor productivity will increase at the same time. Transmission Transmission gets power from one region to another.
Distribution puts the transmitted power into use at the consumer level.
Currently, these two factors contribute about one cent to the overall price of electricity. Since both systems, distance transmission and local distribution, have capacity to carry the extra power that competition will provoke, the current cost is not expected to increase. In fact, competition between transmitters could conceivably reduce transmission expenses marginally. There is reason to believe that advancing technologies in meter reading and billing might lower the cost of local distribution. A major concern about the coming of competition is the problem with local monopoly distribution.