The à¯¿½thudà¯¿½ of Californiaà¯¿½s fall from the deregulation power seat was felt around the nation. Once heralded as the innovative leader in competitive electricity markets, California has, for all intents and purposes, returned to regulation. In light of the many problems brought about by Californiaà¯¿½s faulty legislation, many states are taking a step back from deregulation plans. Others, already open to competition, are looking for ways to mitigate potential future problems. In examining Californiaà¯¿½s missteps and the effect they have had on the rest of the nation, it is important to realize that deregulation was not the problem and that Californiaà¯¿½s situation is, in many ways, unique. Flawed legislation and lack of foresight are primarily to blame for Californiaà¯¿½s woes, and many other states are now reevaluating their own deregulation plans to ensure that they do not encounter the same difficulties.
By the OGJ Online Staff