Competition & Choice

The idea that markets should facilitate the ability of multiple private companies to compete for business by offering customers a variety of service features and characteristics at different price points and rates. The idea being that those companies who best respond to market demands of customers will take market share from competitors.

Regulatory Capture

Refers to the regulated industry having a substantial amount of influence on the decisions that regulators make. This can be through campaign contributions, the real or perceived assurance of industry employment by regulators following their time in government office (‘revolving door’), or simply taking advantage of regulators with limited experience and expertise. “Historically, utilities are monopolies regulated by government agencies. This puts them in a unique business model where the profit motive encourages favorable political treatment, not satisfying customers. The government sets the terms and prices the utilities can charge; so, who is the real “customer” of these utilities? State government officials.”

Choice

The idea that customers should have some level of control to decide where their power comes from, how they will use it, and how they will be charged for it.

Transparency

Electric utilities are regulated by state, federal, and local agencies. These agencies govern the prices they charge, the terms of their service to consumers, their budgets and construction plans, and their programs for energy efficiency and other services. In absence of any competition among the service providers to set lower rates, the service provider might restrict output and set prices at levels higher than are economically justified. Regulation serves the function of ensuring that price structures are followed, that service is adequate, that companies are responsive to consumer needs, and that things like new service orders and billing questions are handled responsively.

(https://redclay.com/2017/08/08/regulation-electricity-industry-regulation-utility-industry/#:~:text=Electric%20utilities%20are%20regulated%20by,energy%20efficiency%20and%20other%20services.)

Monopoly

A utility that is given exclusive right to provide goods and services to a specific area. Customers cannot opt-out or choose to receive service by other means

Protectionism

The idea that those utilities who currently enjoy a granted monopoly will work to protect that monopoly by various means including: regulatory capture, promotion of laws and regulations that enact barriers to entry for future competitors, or outright illegal activity. Anti-free market activities promoted by utilities that would safeguard the monopolistic control of electricity generation by the same impacted utilities.

Our Solutions

Utilities will try to block consumers out of affordable and reliable energy by controlling grid modernization and Clean Energy Standards. How do we create long-term, forward-thinking policies without perpetuating the utility monopoly? By re-introducing innovative technology and increased competition back into state policy.

1.

When legal corruption occurs, prosecute it to its furthest extent to avoid future violations.

3.

These remaining transmission monopolies should then have their licenses put out for open bid periodically to allow for competition.

4.

Drive competition by developing freely function RTOs or ISOs. Such markets offer a greater level of competition and savings for ratepayers

5.

In regulated and semi-regulated markets, elected officials in the state legislature should have the ability to take a more active role in ensuring technological innovations have room to emerge in the marketplace.

The Bottom Line: We Need More

Competition

Customer Choice

Transparency

Free Markets