Deregulation of Electricity

* Re “Special Legislative Session to Tackle Electricity Crisis,” Jan. 2: Assembly Speaker Bob Hertzberg (D-Sherman Oaks) proclaims that “selling electricity is like selling air. It’s not your usual commodity.” Politicians are always willing to support regulation with references to the “essential” nature of a commodity or service. It has been done with air travel, trucking, railroads, telecommunications, oil and natural gas, and the list goes on. In all cases, the consumer, who is the supposed beneficiary of regulation, has not been made better off with price controls and heavy-handed regulation.

The current electricity “crisis” did not result because electricity is like air. It resulted from decades of regulatory prohibitions on new electric generation and a poorly designed, quasi-regulatory “spot” pricing market. In the end, regulated prices do not serve to make electricity (or any commodity) any less scarce. Indeed, regulated prices induce more shortages. In the end, regulation is more about political control than consumer welfare.

MIKE HARRIS

Simi Valley

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It doesn’t take a crystal ball to see that, in the end, only the electricity consumers of California will be gouged by the energy “crisis.” Edison’s current problems (no pun intended) are only a symptom of a system which has made--and is making--vast fortunes for power and fuel suppliers, brokers and investment groups. Who, incidentally, used their political clout to initiate deregulation in the first place.

Southern California Edison did not cause the problem and is not going to shut down. So let’s stop sniffing that red herring. Follow the money and we will see who actually got us into this mess and just how rich they have gotten as a result!

STU O’GUINN

Huntington Beach

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Re “Davis Faces Growing Criticism on Power Crisis,” Dec. 31: So people still wonder why Gov. Gray Davis failed to heed early warnings of power shortages? The answer is near the end of your article: “Davis raised more than $21 million for his reelection campaign in his first 18 months in office, including $500,000 from energy producers, marketers and utilities.” Apparently our governor has other priorities.

DEREK GARDNER

Santa Ana

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Do I understand that the utilities share some of the blame for deregulated energy price increases but want to pass this cost on to consumers instead of their stockholders? Why don’t we require that they issue stock to us in the amount of the increase?

W.F. MacINNES

Lake Arrowhead

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If you liked the way that service got better and prices went down when the government ordered the deregulation of telephone service, allowed the deregulation of cable TV service, pushed the deregulation of electricity and prodded the deregulation of natural gas, then you are really going to love the coming deregulation of our water supply.

Remember your elected representatives at all levels, but especially in the state Assembly, Senate and governor’s office, and be sure to tell them how much you like deregulation when you visit the ballot box at your next opportunity. Better yet, write to them now instead of complaining later.

HUGH T. HOSKINS

Downey