Understanding Electricity Deregulation


Definition-    The reduction of government’s role in controlling markets, which lead to freer markets, and presumably a more efficient marketplace.   Read more detail on the word Deregulation>>   financial-dictionary.thefreedictionary.com





WHAT’S THE ISSUE?-  The U.S. electric industry is undergoing a sea change in the way it delivers electricity to millions of households and businesses nationwide. The $220 billion industry, which… Read more>>     opensecrets.org



Tony Anderson- General Manager, Cherryland Electric Cooperative

Listen to the interview or read the transcript>>

tony-anderson   Energy-101.org–  Well Tony, the issue of choice really comes into play it seems with all that’s happening in the Upper Peninsula of Michigan the U.P. What’s the story up there?

Tony-   There’s a very small transmission through the Straits, underneath the Straits, actually. It’s not big enough to support the UP. And I actually think they have a flow inhibitor on it right now, so you can’t flow power back and forth across the Strait. It just goes one direction. So the UP is disconnected from the Lower Peninsula. So they’re required to get all their power through Wisconsin and those points and the generation they have. And Marquette is certainly the only major generation in the UP. And it’s going to be shut down eventually. So that’s the UP issue, is they have no capacity up there. They have no generation up there. So where are they going to get it from? And that’s a problem for them…Listen to the interview or read the transcript>>     energy-101.org



Tony Anderson- General Manager, Cherryland Electric Cooperative

Listen to the interview and or read the transcript>> 

Photo of Tony Anderson   Energy-101.org …what are the different elements of that pathway that can cause there to be some confusion or opportunities for misadventure? Tony:  Well, there’s 3 distinct segments of the pathway. You have the generation, the coal plant, the gas plant, the nuclear plant. Then you have the transmission system that carries it to an entity like my cooperative, a distribution system. So you have generation, transmission, and distribution. And there’s a cost to each. Generation is…Learn more>>     energy-101.org


HOW IT MAY AFFECT YOU?-  Whether or not electricity deregulation delivers the benefits touted by its supporters – including lower prices and more services – is an open question. Pennsylvania’s deregulation experiment, enacted in 1998, has been…Read more>>      opensecrets.org 

HOW THE INTEREST GROUPS SEE IT?-   Virtually everyone involved with the issue seems to agree that electricity deregulation can work. The major question is how. The drive for electricity deregulation is being led by seven groups,… The groups have spent a combined $50 million lobbying lawmakers, according to their own reports to Congress, which are believed to contain extremely conservative figures…Read more>>       opensecrets.org

 HOW IT ALL BEGAN?-   The origins of the current system of energy production and delivery date back to the New Deal era, when Congress brought an end to the tight reign of large interstate holding companies that controlled more than 75 percent of the country’s electric generating capacity.…Read more>>      opensecrets.org

THE MONEY?-  As talk of national electricity deregulation intensified in the 1990s, electric utilities — not surprisingly — increased their political contributions to candidates and parties….Read more>>  opensecrets.org














THE PARTY LINE?-   As late as 1994, electric utilities slightly favored Democrats over Republicans with their campaign contributions. But like many industries, electric utilities dramatically increased their preference for…Read more>>      opensecrets.org

THE ISSUE IN CONGRESS?-   Electricity deregulation has been the focus of pointed debate in Congress as far back as 1996, but the absence of consensus – among members of Congress and the various groups lobbying them – has resulted in little progress…Read more>>     opensecrets.org



Electricity Deregulation in The United States is now more than 15 years into an experiment to deregulate and restructure the electric power generation, transmission and distribution industry….Why are there such broad disagreement about the impact of Electricity Deregulation? How do the results of deregulation and restructuring compare with predictions?…Read more>>  electricityforum.com


In 1920, Congress established the Federal Power Commission (FPC) to coordinate hydroelectric projects under federal control. Under the joint administration of the Secretary of War, Interior, and Agriculture the FPC could only employ an Executive Secretary, while all other personnel was borrowed from these administrating executive departments….Read more>>     ferc.gov