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How Good Really Were the 'Good Old Days?'Update Finds Electricity Competition Continues to Save Consumers Money

Boston Pacific Co.s 2003 update of its Assessing the Good Old Days of Cost-Plus Regulation study found that during the 1985-2001 period, electricity prices decreased on average by 31 percent for residential customers, 35 percent for industrial/commercial customers and 27 percent for the all customers class.

These savings occurred as competition in the wholesale markets grew, starting in the 1980s. The analysis found that consumers enjoyed the greatest savings where competitive pressures were most significant.

That progress casts a sharp contrast with the significant price increases during the prior cost-plus era of regulated monopolies that brought about the introduction of competition into our nations electricity markets.

In its open-access Order No. 888, the Federal Energy Regulatory Commission reminded us that during the 70s and early 80s, inflation-adjusted electricity prices soared by 25 percent for residential customers and 86 percent for industrial/commercial customers, leading many businesses to become strong advocates for competition.

This is the second update to the July 2001 study released by Boston Pacific Co. and the Electric Power Supply Association.

For more information, including the full document, visit Boston Pacifics web site at http://www.bostonpacific.com/powerprices or contact EPSAs Douglas Austin at daustin@epsa.org, or call (202) 628-8200.