Electric Deregulation Historically Means Higher Power Bills

AI generated summary

Electric bills are rising across the U.S. due to factors such as increased electrification, power shortages, and higher fuel costs, impacting families and businesses. In response, some states are considering deregulation, which allows companies other than local utilities to sell electricity. However, historical data shows that deregulation has led to higher bills, costing customers in deregulated states an additional $19 billion. Retail suppliers, who often employ predatory marketing tactics, charge more than regulated utilities, particularly targeting vulnerable populations.

Recent legislative efforts in states like Maryland have aimed to protect consumers by preventing retail suppliers from charging more than regulated utilities, leading to the exit of these suppliers from the market. Examples from Texas and Illinois illustrate the financial burden on customers in deregulated areas, who have paid billions more than those in regulated regions. As Louisiana considers partial deregulation, concerns arise that it will shift costs to regular consumers while benefiting large industrial users. Advocates argue for real solutions like home weatherization and grid investment, emphasizing that deregulation has consistently failed to lower electric bills.