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Electricity Deregulation

Electricity Deregulation

Outline
Title:  Electricity Deregulation: The Downsides of Breaking Up a Monopoly
Thesis:  The deregulation of electricity will produce numerous negative

results if states don’t enact guidelines to supervise the production of electricity.
Purpose:  To show that although the current public view on electricity deregulation is that it will lower the price of electricity, it will remain the same and in some cases rise.  
Introduction:  Many issues must be finalized before states begin to deregulate electricity.  Items such as stranded cost, distributing electricity, and who will receive the lowest prices as a result of deregulation all could increase preliminary assumptions about lower costs to the consumer.
I.            Electricity is different than conventional monopolies
A.	Vertical bundling
B.	ISO
C.	California’s solution
II.	Green electricity
III.	Possible price increase
A.	Minnesota
B.	Monatana
IV.	Stranded costs
A.	Paying for stranded costs
B.	Take years to pay for stranded costs
Conclusion:  Deregulation seems to be positive on the surface, but must be approached carefully before states choose to deregulate.
Deregulation began with railways, which was proceeded by airlines, telecommunications and natural gas.  All of these deregulated services proved to be beneficial to the consumer.  And on November 15, 1998, Pennsylvania was the second state to fully deregulate their electricity

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Word Count: 2457

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