THE BRAVE New World of energy deregulation is a terribly uncertain one.
California consumers are suffering under a double whammy of power shortages and soaring rates, leading to rolling blackouts and elected leaders calling for a rate-payer rebellion.
In Central Maryland, consumers will finally see lower electric rates, after a month's court delay, amid warnings that it may be a ploy to discourage true energy supply competition.
A dozen states have deregulated electric companies in efforts to cut consumer bills. But the effects of transition are also rippling through other states, as hot weather and tight power supplies sharply push up regional demand and market prices.
It's a reminder that a free market does not assure cheaper prices unless there is ample supply. In California, rising business demand and energy producer reluctance to build new power plants created a West Coast shortage. San Diego electric bills quickly tripled.
Maryland has been more fortunate and foresighted. Deregulation debuted last month only after agreements with major power distribution companies on guaranteed lower electric rates, and on a program to help low-income consumers pay bills.
The state also has an effective power-sharing pact with utilities in Pennsylvania and New Jersey, easing the kind of electricity grid strain that happened in New England and New York in June.
Baltimore-area consumers got a 6.5 percent rate cut in the deregulation agreement between the state Public Service Commission and Baltimore Gas and Electric Co. Over six years, BGE rates will rise to levels of other suppliers.
Some electric companies went to court arguing that the accord sets rates too low, blocking competition. That does not appear to be the case today. But if electric generation does not grow to meet tomorrow's demand, deregulation will be no savior of the consumer.
