Electricity Deregulation in Pennsylvania not the Apocalypse some hoped for

by jsgs45 on November 3, 2010

PA Electricity Deregulation

Pennsylvania Electricity Deregulation

Pennsylvania has been in a regulated electricity market for quite some time now and for many who like the big government way of doing things this was a scary thing to change.

Compare PA Electric Rates

Deregulation has often been used to stir up decent among voters and the population as greedy corporations consorting to raise your Pennsylvania electricity rates even higher.

Although feeding the poor, and keeping low income citizens electric utility bills low is something both liberals and conservatives can agree upon the story against deregulation for many sounds good but if you think about it you realize it isn’t true.

The negative story is that big wall street type corporations are wanting to deregulate the PA electricity utility market in order to greedily take money away from low income elderly people and families.

Of course I don’t want to send in companies that want to steal money from the elderly and low income families but lets get real for a second, that isn’t what electricity deregulation does.

Just as in any competitive market in a free capitalistic society when more companies enter a market to compete efficiencies are brought in and over time the price of a product or service drops.

Now with electricity you also have to deal with demand. In the summer electricity prices sometimes go up because the commodity used to produce electricity is in short supply.

This price is past through to all competing electric companies the same way it would be if it was a regulated government utility in PA with no competition.

Anytime the price of electricity goes up in price people should not immediately point the finger at greedy corporations but should look at the price of the energy commodities on the futures market.

Chances are about 100% likely that the commodity used to produce your electricity went up in price as Pennsylvanians demanded more energy during a hot summer or a cold winter.

There are now over 30 retail electric providers in Pennsylvania selling competitively priced electricity service.

Consumers both residential and commercial or beginning to shop and compare electric prices from the various companies and prices are coming down.

In summary deregulation is in fact working in Pennsylvania. There is not a greedy consorted effort by corporations in PA to drive up electricity prices for the poor.

Pennsylvania is showing amazing numbers and results in their successful opening of electric utility markets to deregulation.

PA should be seen as a good case study on how a competitive market using free market principals can drive down price, create stability in a states economy and electric grid, and ease economic worries during an unstable economy.

Also we can be thankful that Pennsylvania can reduce the size of the government in regards to the energy sectors bureaucratic structure as companies are now happy to handle much of this task through the entrepreneurial spirit available thanks to deregulation.

Electricity Companies in Pennsylvania

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