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Saturday, February 03, 2001

Utility deregulation not proven


Ohio among states trying it

USA Today and The Cincinnati Enquirer

        With California acting as the poster child for the shortcomings of power deregulation, even advocates of electricity deregulation can point to few benefits so far to consumers in any of the states moving fastest toward competition and consumer choice.

        One thing is clear in a study to be released Monday by the Center for the Advancement of Energy Mar kets: Competing suppliers have been slow to arrive. When they do, consumers are reluctant to change.

        In his first report on Ohio's Electric Choice law that went into effect Jan. 1, Consumer's Counsel Robert Tongren also concluded that progress in giving consumers a choice of suppliers has been slow. But, he added, that's not necessarily a bad thing.

        “We remain confident that over time a greater number and variety of electric supplier options will become available,” Mr. Tongren said in a report this week.

        Of 26 electric suppliers certified to offer service in Ohio, only six are actively marketing in the state and none are yet making offers in Cincinnati Gas & Electric's service area.

        About 100,000 residential customers in Akron-based FirstEnergy Corp.'s service area have switched suppliers in the first month, Mr. Tongren said.

        He said consumers should use this time to learn more about picking a new supplier.

        States would like a success or two to wave around. But electricity deregulation is in its infancy. Even states with the most aggressive plans have nothing to sell but faith that it will turn out like long-distance phone competition, leading to lower prices and new services.

        Electric rates nationwide had been falling steadily before recent spikes for natural gas and other fuels used to generate power. But deregulation gets little credit.

        The study due Monday grades the 24 states and the District of Columbia. Ohio ranked 16th. Kentucky and Indiana have not deregulated electricity.

       



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