Prepare for Electric Deregulation Now!

Abstract

Do you know how much money your company is spending on
energy? Do you know where and when you are using energy? Do
you know how much money your company has spent on energy con-
version equipment (i.e., lights, air conditioners, boilers, compressors,
etc.)? Do you know how much you spend to keep that equipment up
and running? Does your company update your energy conversion
equipment with the lowest cost and most efficient products on a
regular basis? Do you keep updated on the latest in utility services
and customer options?
If you answered “no” to any of these questions, you are like
many businesses—unprepared to take advantage of the upcoming
electric deregulation—no matter now this contentious matter may be
finally worked out.
Four years ago Planning & Forecasting Consultants predicted
that deregulation would reduce the overall US electric bill by 4 per-
cent (Business Week June 24, 1996). While competition in the electric
sector seems logical and inevitable, so far the process and results
have been very erratic. Some businesses have received huge savings
while others have not seen any benefits. There are many reasons for
these benefit gaps. For example, California dealt with stranded cost
recovery differently than Pennsylvania.
But the single biggest reason that consumers are not benefiting
more is that consumers do not truly understand their energy needs
and wants. As we leave the era of monopoly regulation, where you
could rely on the regulators to get you a fair deal, consumers now
must prepare themselves to get a good deal. Markets don’t reward
those who go unprepared.