Chris Parker
482.004
Dr. Singer
In 1996 deregulation allowed California utility companies to sell power plants and collect over 19 billion dollars in ratepayer subsidies. The money was used to purchase plants in other countries, reward executives with huge pay raises and buy back stock. A handful of unregulated companies withheld power, causing shortages to boost wholesale prices.
Deregulation led many consumers to believe that open markets would bring in an array of choices and lower prices. Consumers will have to settle for a single power provider at higher prices. Rates are nearly 150 percent higher than last spring. Power companies are exploiting the market for their own advantage. Some companies have jacked rates up to 200 percent than offer a deal at a 50 percent hike. Utility companies promised to modernize the electricity market and reduce......
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Approximate Word Count: 613
Approximate Pages: 3 (260 words per double-spaced page) |