Posted on 03/25/2014 5:07:22 AM PDT by MichCapCon
What could your household do with an extra $240 per year?
A new study estimates that Illinois electricity consumers have saved $37 billion from 1999 to 2013 as a result of increased electricity and natural gas competition. That works out to a total savings of $3,600 per household, or $240 annually. Illinois now boasts the lowest electricity prices in the Midwest.
The report calls these consumer savings "a triumph of market-based public policy." It outlines the process by which the Land of Lincoln transitioned from providing electricity through a state-controlled monopolistic system to one centered on competitive, level and open markets. As centuries of research on trade markets would predict, Illinois consumers win when electricity firms compete for their business.
The report notes that Michigan is a state with "extremely limited customer choice." Not coincidentally, we also have some of the highest electricity rates in the country.
There's a debate right now inside Lansing about whether Michigan will follow a path similar to Illinois and open the provision of electricity to more utilities, or whether it will continue using a legal monopoly to guarantee 90 percent of the electricity market to just two firms.
If Illinois is any example, Michigan electricity consumers should favor opening this state up to the positive cost pressures of a more competitive electricity market.
That’s going to change shortly per Obama’s promise to make electricity prices necessarily skyrocket.
I know I’m damn sick of the ads running every 10 minutes trying to scare us into protecting Consumers Energy monopoly.
Texas went from a PUC-controlled franchise market, where returns investment was capped, and could require generation plants, to an unregulated “free market”. The result were rates that went from some of the lowest in the nation to the highest.
Deregulation is not the answer, as manipulation of rates, generation, etc is rampant.
Competition is good. No company should ever be protected from outside competition.
Buy the same amount of milk I could have for $240 less 3 years ago...
Nonsense. Texas residential electricity rates are below the national average.
Average retail price of electricity to ultimate customers: Latest month
http://www.eia.gov/electricity/monthly/xls/table_5_06_a.xlsx
In January 2014:
Texas average rate was 11.19¢/kwh
US average rate was 11.65¢/kwh
Hawaii average rate was 37.4011.65¢/kwh
Rhode Island average rate was 20.16 ¢/kwh
22 states plus DC had higher rates than Texas.
Correction:
Hawaii average rate was 37.40¢/kwh
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.