Will all users of electricity benefit?

Myth: Customer choice will benefit "big business" much more than John Q. Public because industrial customers have the incentives and resources to aggressively pursue the best deals. In other words, "the big dogs will eat first." Reality: The big dogs are already eating. Only customer choice will give little dogs the bark they need to take back their bowls. In a number of states, large industrial customers have threatened to move or to self-generate if they do not get significant price breaks. In response, many utilities, with the approval of their regulators, have offered their larger customers special deals—guaranteeing deep discounts over a long period of time. Residential customers are offered no such special deals. In the current regulated system, regulators and utilities have to grant such special deals. Industrials have all the leverage. They can move or self generate if they do not get their price. With the power to choose, smaller businesses and residential customers will also be able to get the best possible deal from suppliers. Rather than having to move to another state, they will be able to simply switch to another supplier if their existing utility does not offer them the lowest possible price. The result will be that they too will get the lowest possible price and best service available. It is also important to recognize that residential customers have enjoyed significant savings under the wholesale competition that exists now. Energy Information Administration data shows that real residential electricity prices dropped by 24 percent from 1985 to 1995 under limited, wholesale competition. With customer choice, residential customers can eat just as well as the "big dogs."