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Deregulation

The article I chose has to with alternative energy sources and deregulation of the industry. The focus of the article is put on a company called PowerLight Corporation in Berkeley, California. This particular $10 million company designs and manufacturers solar electric products. PowerLight Corp. is a very fast growing company over past years and is expected to grow at an even faster rate in years to come. The government in California provides great aid to these alternative energy companies by just about splitting the cost 50/50 with the consumers when alternative energy products are purchased. Since PowerLight Corp. has been around for some time now they are currently offering 20-year warranties on their products. The article then brings up the issue of deregulation in the industry, leaving the reader to draw his or her own conclusions on the possible and somewhat unpredictable effects it may have when implemented. Undoubtedly, energy is a treacherous business. One can enter the market one year, and have tremendous success, and by the same time the year after they could possibly be bankrupt. Many believe deregulation is the answer to the industry's problem, while others believe it is only the answer to the alternative ene


The main goal of these regulatory commissions was to create a reasonable rate structure that would be appealing to both producers and consumers. While this system has worked for many years, it has recently come under heavy criticism, with many people pushing for open competition among electric power producers. Although once believed to be an impossible proposal, competition among electric power producers is a reality in a few areas, such as Massachusetts. The attempt at regulating price in the electric industry is a troublesome one. The objective is not only to minimize the cost to consumers, but also to create a rate structure that will entice the electric company to remain in the industry. The regulatory commission wants the electric company to have a reason to innovate so that they will be able to provide cheaper power in the future. However, if the commission captures all gains from innovation in the form of lower prices, then the electric company has no incentive to take on any type of innovation. Therefore, a compromise must be reached which would provide sufficient incentives for firms to carry out cost-reducing actions while at the same time ensuring that the price for consumers is not too high.

rgy market. Alongside the article from Inc. Magazine discussing PowerLight Corp. and deregulation, I feel it is necessary to incorporate more information on deregulation to validify and clarify my assessment. I used very small clips of articles and industry news from the Electric Light & Power website to provide more detailed analysis of deregulation including certain laws, minor market data, and recent studies done on the electric power industry.



Some common words found in the essay are:
Light Power, Electricity Law, Telecommunications Energy, PowerLight Corp, Regulatory Commission, Corp Deregulation, PowerLight Corp's, Industry Volume, , Berkeley California, powerlight corp, alternative energy, electric industry, electric rates, electric company, competition electric, consumers choose, light power website, power suppliers, law provides, lower prices, electric light power, lower prices demanded, electric power producers, recent studies electric,
Approximate Word count = 1839
Approximate Pages = 7 (250 words per page double spaced)


  

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