Consumers Wary Of Deregulation

Utility deregulation leaves some consumers cold.

Despite years of choice in telecommunications and natural gas, speakers said Thursday, most residential customers have stuck with their traditional provider, be it AT&T or their local utility.

And a recent survey of 500 Washington voters indicates most are skeptical about the advantages of deregulating electric utilities, the last preserve of regulation.

A discussion of electricity deregulation led off a Northwest regional economic conference at the Red Lion Hotel City Center.

Already a reality at the wholesale level, deregulation could give every business and homeowner the ability to choose their electricity supplier.

For the Northwest, deregulation creates new opportunities, but also exposes the region’s vast store of cheap hydropower to poaching by utilities from other areas.

“It has always been the envy of every other part of the nation,” said John Etchart, chairman of the Northwest Power Planning Council.

Although Bonneville Power Administration rates now are slightly higher than those in the open market, the agency will regain its advantage as debt is retired and prices rise for the natural gas used for generation by competitors, he said.

Etchart said Northwest utilities must be willing to pay the higher upfront costs in order to keep Bonneville power in the region.

But as debate over deregulation resounds through state legislatures and the Congress, some question the degree of enthusiasm among consumers, especially homewoners who do not buy in the quantity that produces big savings on small price differences.

Paul Redmond, chairman of Washington Water Power Co., said the Spokane utility has tempered its aggressive deregulation plans as officials await the result of pilot programs tailored to industry and residential customers.

“Are we really doing something people want?” he asked, noting that only 4 percent of Californians have taken advantage of their right to choose a natural gas supplier.

Nancy Hirsh, policy adviser for the Northwest Conservation Act Coalition, said consumers do not have the education they need to make informed decisions about a restructured electricity system.

With monopolies, she said, consumers at least know where to take concerns about rates and service quality.

“Consumer choice in the telephone and cable TV markets has made consumer protection a very difficult task,” she said. “Maintaining high standards for consumer protection and service quality is even more important in the electricity industry, as it is a fundamental necessity of life these days.”

In the Northwest, Bonneville has also sponsored programs on behalf of conservation and fish that could be jeopardized by a wholly deregulated market, Hirsh said.

, DataTimes