Expert: Years
until healthy electricity market
Oct 3, 2006 - Chicago Sun-Times
Author(s): Mary Wisniewski
A robust competitive market for retail electric customers could take
five to seven years to develop, according to an economic expert who
testified Monday before the Illinois Commerce Commission.
A.J. Goulding of London Economics International, spoke at an ICC
workshop on retail electric competition. He said it would be
"unrealistic" to expect a healthy competitive retail market to develop
in three years or less.
Suppliers of electricity say retail electric competition is possible
in Illinois now because of the impending end of a nine- year rate
freeze. Companies that couldn't compete against nine years of
artificially low rates enjoyed by ComEd residents are now thinking about
breaking into the market.
Ronald M. Cerniglia, director of the Office of Retail Market
Development at the New York State Public Service Commission, said
educating consumers is key to making competition work.
Cerniglia's office runs a Web site called "Power to Choose," which
supplies consumers with information about prices and plans offered by
different suppliers.
Christopher Thomas, director of policy for the Citizens Utility
Board, a consumer watchdog group, said competitive choice for retail
customers "should be considered carefully and developed appropriately."
He said he wouldn't want a repeat of what has happened in the natural
gas market in Illinois -- with door-to-door salesmen offering misleading
information to get people to sign up for plans.
CUB is pushing for a three-year extension of the electric rate freeze
-- a measure supported by Illinois House Speaker Michael Madigan.
mwisniewski@suntimes.com
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