Well, we can argue the difference between 'deregulated' and 'reregulated'. In truth, nothing is totally 'deregulated' in that all regulations are removed, it is a matter of degree.
Before this 'reregulation', energy prices and supply were stable. Prices were steady. Price increases needed to be justified as needed. Energy prices were low by national standards. PG&E was well-run, and very customer-focussed for a large utility.
After 'reregulation', the energy bandits took over. Gas supplies were manipulated, and prices shot through the roof. Electrical energy was hoarded, then released 'at the last minute' at horrific spot market prices. PG&E went from being a well-run public utility to a poorly run energy company, basically because they didn't know how to operate in the new environment.
The promise was that energy prices would benefit from increased competition. The reality is that we were gouged, fleeced, and left for dead by greedy utility companies such as Enron.
'Reregulation' failed miserably in California. There may be some form of it that would be successful, but we're going be digging ourselves out of this for a long time thanks to 'free market economics'. |
