Nader Group's Restructuring Plan Puts Consumers First

Fortnightly Magazine - July 15 1996
This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.
The belief that competition will take over for regulation is a "fairy tale approach" to

electric industry restructuring.

That's what Matthew Freedman, energy policy analyst, announced at a Public Citizen briefing on the advocacy group's Power for the People, a "public interest blueprint" for the new electric market.

Report - Grid Investment for Medium & Heavy Duty EVs

"Competition in the electric power industry could either usher in a new era of cleaner, more affordable energy services or prove to be the biggest customer shakedown of our time," the report reads. Possible outcomes of restructuring, the report notes, include:

s Higher bills for small business and residential consumers and discounted large-consumer rates

s Elimination of energy-efficiency programs

s Unregulated monopoly utilities stifling competition and increasing profits

s Bail outs of inefficient, high-cost utilities, which will reward shareholders for bad business decisions.

To prevent those outcomes and to ensure that customers receive benefits, the blueprint proposes:

s Withholding recovery of costs for uneconomical utility assets, except in special circumstances

s Breaking up vertically integrated monopolies by divesting assets

This full article is only accessible by current license holders. Please login to view the full content.
Don't have a license yet? Click here to sign up for Public Utilities Fortnightly, and gain access to the entire Fortnightly article database online.