The danger is that legislators will step in, as they did in San Diego, hampering the competition deregulation is meant to foster. That, in turn, will diminish the incentive to build new power plants. So, in all likelihood, the shift toward open energy markets will be painfully slow, with continuing power shortages and climbing prices in some markets. Consumers simply aren't embracing deregulation fast enough, experts say. If California is any indication, the problems of deregulation nationally may be more daunting than anyone imagined.
Most consumers know very little about the issue, for one thing.
And those who are informed seem unwilling to participate. The shortcomings of deregulation are still greater. Analysts say Congress' failure to create uniform restructuring laws has resulted in protracted negotiations between states and federal agencies over how to dismantle monopoly utilities. This patchwork restructuring has contributed to wide differences in energy prices from one market to the next. As a result, the reliability of the nation's power grid is declining.