Power prices put utilities in the hot seat

Spurred by skyrocketing power bills, lawmakers in at least six states are considering reining in electric utilities that were freed from regulation in the late 1990s.

Moves to re-impose state oversight of electricity rates underline how deregulation of the electric industry has failed to live up to its promises of competition, lower prices and a reliable power infrastructure.


Officials in Illinois and Texas are alleging that power companies illegally manipulated prices, and bills are moving through both legislatures to roll back recent rate hikes. The Virginia General Assembly has sent Gov. Tim Kaine (D) a measure to set power company profits and shut out competition in his state’s electricity market. Legislatures in Connecticut, Maryland and Montana also are considering measures to overhaul utility regulations and rein in prices.

“It looks like electricity restructuring is teetering on the edge of failure,” said David Kolata, director of the Citizens Utility Board of Illinois. Electricity bills have risen 26 percent to 55 percent for average Illinois homeowners since the expiration last year of a rate freeze in place since deregulation. In some areas bills have doubled or tripled, Kolata said.

Stateline.org