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Peter Roff: Powering Up America by Giving Consumers Choice

(Bas van der Schot cartoon / caglecartoons.com) America’s high national living standards lead us to consider things like abundant access to clean water, comprehensive cellular service and a reliable electric grid commonplace. Much of the rest of the world regards them as luxuries unavailable to many people. Consequently, we tend to think about these things only when they don’t work. Cloudy water creates a crisis. A cell phone outage leaves us stranded. Failures in the power market leave us, literally and figuratively, in the dark about what to do. The critics of how the market allocates the distribution of electric power allege competition would lead to more brown- and blackouts. Despite abundant evidence they are wrong, they don’t trust the competitive market system to keep the lights on.

Energy Market Competition, Not Government Diktat, Will Benefit Consumers

In most portions of the U.S. economy, market competition puts downward pressure on prices, increases investment in innovation, and provides consumers a variety of options of purchases. The benefits of competition are obvious when Americans can shop around for automobiles at car dealerships or when walking the aisles of the supermarket. Competition in energy markets may not be as recognizable as cars or groceries, but Americans should know many of our country’s energy markets have been at the forefront of competition liberalization since the 1990s. As a result, monthly electric rates are lower or stagnant while consumers enjoy more options of energy piped into their homes.

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