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WHEN DE-REGULATION BECOMES RE-REGULATION

We have all seen reports on how deregulation of the electric utility industry will reduce your bill. I am all for improving our efficiency! I am all for lowering costs! Competition theoretically should do this. However, let's look at some of those industries that are touted as having been successfully deregulated. Kenneth Cook, President/CEO

AIRLINES:

Airfares have been lower for travelers who live near large "hub" terminals and do a lot of traveling. But what has happened to those of us in smaller cities and rural areas? Some have fares several times those before deregulation. Some have lost airline service or have been unable to attract airlines to their service area.

Question:

 What do you call air travelers in rural areas since deregulation?

Answer:

 Motorists.

Now we see where the federal budget has a provision for providing $50 million to help small communities get air service back. As taxpayers, we know this subsidy will only get larger in future years.

TELEPHONE:

Long distance fares have decreased, especially for those customers with high-usage. But what about those mainly using local service? Their rates have increased dramatically, while finding service no longer available in their community, sometimes not even in the same state. To insure universal service for all phone users, the federal government is suggesting they provide hundreds of millions of dollars to subsidize the industry.

HEALTHCARE:

In an effort to curb increasing health costs, the health care industry succumbed to deregulation also. We now see services have not improved but have been more difficult to secure because of managed care plans, HMOs, etc. Prices have skyrocketed and the "for-profit" groups have made their money from our tax dollars through Medicare and Medicaid.

ELECTRIC UTILITY:

There are lots of questions yet to be answered about deregulating the electric industry. Since we will not be truly deregulated, but simply given a new set of rules to go by, I prefer to use the term "re-regulation."

Who will provide future generating capacity as all parties involved stand back and wait for the first entity to step forward? No one is now building generation capacity and very few even have plans for new construction. When there is no longer adequate capacity at any price, what will happen to the future price?

We in Georgia have enjoyed lower rates than other areas of the country. What will prevent generating companies in the South from selling to those areas of the country where rates are much higher? "Profit" is the American way!

I support your freedom to choose. I want you to fully investigate and have all the facts available. You need to make an intelligent decision when the time for "re-regulation" comes.

Inform your elected representatives and senators that you expect them to act carefully so we won't wind up like other so-called deregulated industries where the taxpayer foots more of the bill.

As for your cooperative, we pledge to continue to offer "for-cost" service with no stockholders waiting for dividends! We also pledge to continue to keep you informed about our way of doing business and the benefits of co-op ownership to you, our owners.

 
 © 2004 Jefferson Energy Cooperative