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Question on Deregulating Power Companies (Entergy/Centerpoint, Etc)
Posted on 8/6/19 at 9:10 pm
Posted on 8/6/19 at 9:10 pm
Based on an offshoot conversation sparked from an old thread.
If power companies are able to eliminate the sales and account management function, does that make them more or less accountable? I've lived in both regulated and deregulated areas and just not sure what the best solution is. Does deregulating help lower prices for the consumer based on the cost pressures from all the 3rd party sales companies? Or, does the power company laugh because they will always cover their costs... Or does the local government power contract manager need to show transparency in negotiation/audit?
How do we hold power companies to account?
If power companies are able to eliminate the sales and account management function, does that make them more or less accountable? I've lived in both regulated and deregulated areas and just not sure what the best solution is. Does deregulating help lower prices for the consumer based on the cost pressures from all the 3rd party sales companies? Or, does the power company laugh because they will always cover their costs... Or does the local government power contract manager need to show transparency in negotiation/audit?
How do we hold power companies to account?
6
Posted on 8/6/19 at 9:11 pm to Nephropidae
Houston has over 20 companies and has one of the lowest rates in the world.
Posted on 8/6/19 at 9:12 pm to Nephropidae
quote:
If power companies are able to eliminate the sales and account management function, does that make them more or less accountable?
I’ve found that it does but honestly that’s with pretty limited experience.
Posted on 8/6/19 at 9:17 pm to Gray12
I've lived in Houston as well. Not convinced.
Posted on 8/6/19 at 9:19 pm to Nephropidae
Co-op.
Posted on 8/6/19 at 9:20 pm to OysterPoBoy
It depends on where you live, regulation in the Tennessee Valley helped this area a ton. We wouldn’t have the rates or environment we have for bringing in companies. Our area has similar rates to Texas, socialism at work since the 30s.
This post was edited on 8/6/19 at 9:24 pm
Posted on 8/6/19 at 9:22 pm to Janky
quote:Can you elaborate?
Co-op.
Posted on 8/6/19 at 9:22 pm to Nephropidae
You can't really deregulate most of the industry, or you'd have power lines all over the place.
The power generation part is a bit more amenable to deregulation, but even there I think there are a lot of costs and benefits that the market fails to capture.
It's easy to argue that nuclear power plants are a public good, for example, but it's hard to imagine any entity other than a regulated utility or a quasi-governmental organization building one.
So I guess I think it's mostly bunk.
The power generation part is a bit more amenable to deregulation, but even there I think there are a lot of costs and benefits that the market fails to capture.
It's easy to argue that nuclear power plants are a public good, for example, but it's hard to imagine any entity other than a regulated utility or a quasi-governmental organization building one.
So I guess I think it's mostly bunk.
Posted on 8/6/19 at 9:23 pm to Dam Guide
I've heard Chattanooga has done some interesting things around power and the benefits to the community - please share...
Posted on 8/6/19 at 9:24 pm to Nephropidae
quote:
does the power company laugh because they will always cover their costs
It doesn’t deregulate the distribution market. The regulated monopoly still controls and maintains the lines, transformers, poles and substations. They still massage the regulatory agency to get their rate of return. The only things that change are:
1. There are more middle-men fighting for the right to send you a bill. They use shiny bells and whistles like free weekends or 100% green plans to lure you in. They spend lots on marketing, a cost that gets passed on to you.
2. The generation market has more companies to sell to. This is where the theoretical economic benefit kicks in. In theory, the middle-men bargain for and trade contracts from the generators, who are competing against one another to sell their power.
The reality of this situation is that the consumer pays about the same rate they would normally pay under a fully regulated model. Any cost savings obtained by trading generation futures are pocketed by the retailers (middle-men) who ultimately send you a bill.
Want to hold power companies accountable? Contact your public utility commission.
Posted on 8/6/19 at 9:27 pm to Nephropidae
quote:
I've heard Chattanooga has done some interesting things around power and the benefits to the community - please share...
It’s not just Chattanooga. It’s the TVA service area. TVA is a socialist offspring from FDR’s new deal. It brought electricity to areas that would of never got it and turned into the power generation for most of Tennessee, some of Kentucky, Alabama, Mississippi, Georgia, Virginia, and North Carolina. Coops and Utility Boards distribute power from TVA. TVA just does generation and high voltage transmission.
Chattanooga revolutionized residential internet in the world using their local utility board. First place to adopt gigabit internet to residential and now has 10 gig to residents. Beat Google Fiber and everyone else to the punch.
This post was edited on 8/6/19 at 9:32 pm
Posted on 8/6/19 at 9:28 pm to Nephropidae
quote:
I've lived in both regulated and deregulated areas and just not sure what the best solution is
Regulated energy is cheaper on average.
deregulated-texas-electricity-costs-exceed-national-averag
appa-deregulation-has-not-achieved-intended-results
This post was edited on 8/6/19 at 9:30 pm
Posted on 8/6/19 at 9:40 pm to Dam Guide
quote:this is what I was thinking of for Chattanooga (thanks) - every county/parish/township needs to look at that case history for installing fiber.
Chattanooga revolutionized residential internet in the world using their local utility board. First place to adopt gigabit internet to residential and now has 10 gig to residents. Beat Google Fiber and everyone else to the punch.
Posted on 8/6/19 at 9:46 pm to Nephropidae
(no message)
This post was edited on 12/4/20 at 8:53 am
Posted on 8/6/19 at 9:55 pm to FunroePete
These charts seem to conflict your link?
Also I think they are including t&d in their rates, and which isn't really apples to apples?
Also I think they are including t&d in their rates, and which isn't really apples to apples?
This post was edited on 8/6/19 at 9:58 pm
Posted on 8/6/19 at 10:02 pm to Gray12
quote:
Houston has over 20 companies and has one of the lowest rates in the world.
Having access to cheap natural gas and wind resource at night has more to do with that than anything. Texas is an anomaly. My first 1,000 kwh are essentially free.
Posted on 8/6/19 at 10:15 pm to sneakytiger
quote:explain... as an end user why do you care if it's nat gas, wind, hydro, etc?
Having access to cheap natural gas and wind resource at night has more to do with that than anything. Texas is an anomaly. My first 1,000 kwh are essentially free.
Posted on 8/6/19 at 10:20 pm to Nephropidae
I'm just saying that's why texas power is so cheap. Not necessarily because of deregulation.
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