The West Virginia Public Service Commission (PSC) electricity deregulation plan is flawed from both a consumer standpoint and on environmental grounds.

Rate Increases. Although electric rates are "capped," that cap is defined as six straight years of rate increases, regardless of the actual cost of electricity. The only justification I have ever seen for asking West Virginian’s to pay higher rates is simply because rates are higher elsewhere and we apparently want to "compete" to pay those higher rates. (Could it be that the utilities simply want more money?)

Price gouging. Once completely deregulated, there is no protection whatsoever in the PSC plan from the kind of price gouging now occurring in California where there already high rates increased 2-3 fold, sometimes much more, this year. Some utilities are apparently charging 10-fold higher rates during peak usage times, forcing customers to unplug refrigerators during this summer’s heat waves.

Unfair Competitive Practices. The PSC plan will allow existing monopolies to retain "affiliations" between "regulated" local distribution companies and the deregulated power generation end of the business. This means that American Electric Power and Allegheny Power will have a competitive advantage which will prevent competitors from entering the market, thereby leaving us at the mercy of unregulated monopolies.

Inadequate Energy Conservation Measures. The easiest way to save money AND benefit the environment is to use less electricity. But the PSC plan ignores conservation entirely, except for limited home weatherization assistance for low-income customers. Most states mandate energy conservation assistance, even without deregulation.

No Renewables Portfolio Standard. A Renewables Portfolio Standard (RSP) is a requirement that utilities have available a small proportion of their generation capacity from renewable sources. RPSs in other states require 5-10 % renewables within 8-10 years. Customers in other states have demonstrated the demand for renewables, but WV utilities admit to having no plans whatsoever to meet this demand. Thus, an RSP is needed to develop the consumer choices that choosy customers want.

Continued Grandfathering of Old Polluting Power Plants. Under the Clean Air Act, old power plants were not required to meet the same standards as new plants, because "everybody knew" that these plants would be closed down soon. Now it is 30 years later and these dinosaurs continue to belch unacceptable levels of SOx, NOx, VOC, Particulates, and other nasty stuff. From a competition standpoint, who could afford to build a new power plant, with tight pollution controls, if they have to compete with old plants that are already paid for AND exempted from the same standards? Many other states require old plants to clean up as part of a dereg plan, but West Virginia’s plan continues to favor the old dinosaurs from the existing monopolies by ignoring their environmental impact.

Inadequate Environmental Disclosure. Most states require utilities to "Tell the Whole Truth" when selling to customers, since competition is based on "an informed consumer making informed choices." But the PSC plan limits requirements to disclose the generation mix or the environmental emissions, and makes "price" the only information customers will see on a regular basis. If "price" is the only information customers get, there will inevitably be only one "low cost provider" and competition will never develop. But if different companies can compete based on a variety of environmental factors that customers can choose from, the marketplace could become a powerful force for reforming the industry. The PSC plan limits environmental disclosure to customers, when it should require environmental disclosure with every electric bill, every sales pitch, and every contract offer. Environmental disclosure is posted on every appliance or auto you buy. Why not electricity?