Like most states, Florida slowly is recognizing the long-term benefits in loosening laws to allow electric utilities, businesses and, eventually, residents to choose their electricity from competing power providers. Instead, California's power nightmare gives Florida a laundry list of what not to do. After the initial promise of lower power rates from deregulation, Californians face an ugly future of soaring electricity rates to cover the unexpected billions spent on high-priced power. Rather than lead the United States toward more competitively priced electricity, California is on the verge of a state government takeover of its power business and a taxpayer bailout of its two biggest electric utilities. California consumers are protesting in the streets against huge rate hikes ahead, while businesses are cursing last month's rolling blackouts and the likely threat of power interruptions for months to come.
Some companies talk of leaving the state.
Throughout the late 1990s, California enjoyed an international image as the homeland of the new economy, with Silicon Valley as its capital. Now on the verge of a threatened U.S. recession, the state battles a reputation as a Third World country constantly at risk of a power failure. But there are still good lessons for Florida from such adversity. Florida is one of more than 25 states that are in various stages of deregulating their power markets. Before recent spikes in prices for natural gas, oil and other fuels used to generate power, electric rates nationwide had been falling steadily.