In 1898 Thomas Edison's administrative assistant, Samuel Insull, first proposed state regulation of power companies to eliminate competition. Almost 100 years later, despite satellites and space shuttles, we are still living under the regime of state-regulated monopolies providing our power. Thankfully, the government decided to stay out of regulating computers, and consumers have benefited greatly. I believe the same would be true if Congress opened up electricity markets and allowed retail competition. Just ask any kid who has opened up a lemonade stand for a quarter a cup only to be undercut by the neighbor's children selling for a dime.
Lower prices are the natural result of competition.
Robert Crandall, of the Brookings Institute, and Jerry Ellig, of the Center for Market Processes, have shown that the deregulation of other major industries has forced prices down. Besides lower prices, competition also brings about innovations in the marketplace. As part of the state of New Hampshire's pilot project for retail electricity competition, Green Mountain Power testified last week before the Energy and Power Subcommittee about their strategy to offer consumers bees wax candles to encourage more candlelight dinners and thus more energy conservation. They also give out free seedlings to those who would choose more environmentally friendly power production. As schools save on electricity costs, there will be more money available for the learning needs of students.