Wednesday, September 26, 2007

Deregulation and the Environment

Deregulation is seen as a solution for many sectors and electricity is no exception. Opponents of deregulation point to California's failed experiment. Ironically, PG&E, the utility at the center of the deregulation mess in that state, is now one of proponents of emissions caps and supplier of green energy.

Deregulation alone cannot solve market or environmental problems. It needs to be part of a complete policy designed to achieve the goal. For electricity it should be power at the lowest possible cost, generated responsibly to minimize environmental damage. Read this article and I think the U.K. has achieved most of that. I will admit that I am not familiar with the U.K. example so this editorial may be one sided. However, it points out that regulated systems are maintained to generate profits for utilities, stifle innovation and subsidize harmful generation practices and cheap power for polluting industries.

I have not been feeling well lately and will probably not write for the rest of the week. Hope to be back at it next week.

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