From SaukValley.com via Rich
Q: Did competition develop, and how did it affect consumers?
A: Competition developed for the commercial market, as several companies emerged to provide electricity for businesses and industries. But ComEd and Ameren strengthened their grip on the residential market because potential competitors were scared off by the rate freeze, fearing prices were too low to make a profit.
With any luck, greater electrical choices should be around the corner as the caps are gone. Blue Star and Commerce are the only listed Residential choices as of now, and while the consumer market isn’t as valuable as the business market, I would expect some green energy companies to jump in now that the caps are gone. It would be especially smart if the Governor were to recruit some of those green companies in conjunction with the Sierra Club and other environmental groups in Illinois.
I’ve generally stayed away from the commentary on the rate freeze–I tend to think that a more gradual rate increase would have been the answer, with perhaps a built higher rate at the end to help the companies recoup. That’s too much compromise apparently. That said, the Lege and the Governor need to think of ways to spur residential and business energy development with green sources. In theory, deregulation should help that by allowing individuals to choose green energy over other sources even if there is a slight premium. Given the disincentives to date, a little bit of salesmanship might be in order once the rate increase is finally dealt with.
It also has important long term competitive effects in green energy tends to have far fewer greenhouse gas emissions and as such, will be far more cost effective when regulations force standard energy prices higher. Additionally, the presence of such power providers increases the research and development that would go on in Illinois, another side benefit then being the technology spillovers as people move towards greener energy.