Deregulation can work
Earlier this month, Texas became the second most populated state in the nation to begin deregulating its electricity markets in order to promote competition and reduce prices for consumers. Despite the results of California\'s failed attempt at deregulation, legislators say they have learned from past mistakes and taken steps to ensure a smooth transition to retail competition in the future. While it is still uncertain whether such measures will guarantee success, Texas is headed in the right direction and should be congratulated for seeing California\'s experience for what it was: an example of how not to deregulate, not a failure of deregulation itself. Diminished investment in electric power generating capacity was a leading factor that contributed to high prices and power shortages in California. The state's rigorous environmental regulations were largely to blame.
