By Luige del Puerto | Arizona Capitol Times
For a century, public utilities have produced and delivered electricity to homes and industries in a system that guarantees their profit and ensures steady service to residents.
Now, the Arizona Corporation Commission is considering whether to shake up the monopolies and bring competition to the state.
In May, the commission took the first steps toward electricity deregulation by officially asking the public to weigh in on the benefits and disadvantages of breaking up the state’s system of “regulated monopoly,” under which a handful of public utility firms are in charge of generating and distributing power.
Specifically, the commission wants to know if bringing competition to Arizona would result in cheaper rates for all customers.
What is at stake is control over Arizona’s electricity market. In the next several weeks, the state’s energy regulators will decide whether Arizona plunges into the waters of competition or settles in monopoly’s familiar terrain.
At the heart of the issue are two conflicting concepts of America’ success: One observes that competition has ushered in an era of innovation, producing smart phones and more airline choices. The other contends that only tightly regulated monopolies can deliver satisfactory results in capital-intensive industries like electric service.
