Introductory Page
Figure 1. Power Pollution (Clear the Air, n/d).
The concept of power deregulation first came about in 1978, when the Public Utility Regulatory Policies Act was passed. The real push towards deregulation was not seen until 1992 when congress passed the Energy Policy Act. This act pushed for more competition in the bulk power supply market (EIA, 2002). In 1996 the Federal Energy Regulatory Commission (FERC) stated that electrical transmission lines must be open for use by all electrical producers. Due to the FERC's actions the electrical industry in the United States has been in transition from a highly monitored monopoly that provided all electrical needs, to a competitive market which supplies the actual electricity (EIA, 2002). As areas move towards deregulation, the price of electricity will be left to the free market, and determined by the competing companies (EIA, 2000). Officials hope that with the open market inefficiencies will be reduced, thus also reducing production costs which in turn will lower the price of electricity (EIA, 2000). The new market is also expected to protect consumers from insufficient future capacities, and ensure that peak demand will not exceed capacity (EIA, 2002). Demand (and capacity) have been on the rise, so the companies in the free market must make sure that demand does not exceed capacity because there would be a number of angry customers (Figure 2).
Figure 2. Capacity and Demand (EIA, 2002).
The majority of support for the concept of deregulation comes from the Midwestern states, but many states in the east are also support the idea however the eastern states believe deregulation should occur slowly, and under a great deal of supervision One big fear in the east is that the Midwestern sates will use electricity that comes from the cheaper, more disastrous plants, and this will lead to an increase of air born pollutants traveling into the Northeast. A study completed by the Harvard Electric Policy Group concluded that in an open market, where the main goal is profit, cleaner but more expensive plants will shut down, and cheaper dirtier plants will be used in their place (American Chemical Society, 1997). The Midwestern states already produce too much pollution, and if predictions are correct we will only be seeing pollution levels that are on the rise (Figure 3).
Figure 3. NOx Pollution (American Chemical Society, 1997).
Another study conducted by the Center for Clean Air Policy used computer models to show the same result; power will dominantly be supplied by utilities that operate low cost equipment which is very harmful to the environment. People in the east will want to by the cheaper electricity, and no one will purchase the costly, but environmentally friendly energy, so before you know it the only energy available will be from the cheap, dirty companies (American Chemical Society, 1997). However, at the same time some people who support deregulation say that the open market is the way to ensure environmental protection, not government regulation. Congressman Thomas Bliley, a republican from Virginia, states "Competitive markets, not mere mandates, are the best way to encourage greater energy efficiency and the growth of alternative fuel sources" (American Chemical Society, 1997). Whether or not deregulation has a positive or negative outcome on emission control is an important issue, but the most important issue is that the emissions are greatly reduced. Hopefully with or without total deregulation there can still be a drastic reduction in air pollution, and we can start to make this world a better place.