Why electric deregulation isn’t working

Even the Cato Institute doesn’t like it, but for the wrong reasons, although it’s OK with reverting

As I can tell you from living in Texas, even though 100 percent dereg doesn’t hit here until Jan. 1, it just doesn’t work. Of course, if you want more proof, read this from the New York Times.

As for Cato? It’s complaint is that dereg still leaves the government too much in the market. Hey, Mr. “Libertarian Democrat,” Markos Moulitsas, did you hear that? Sure, the libertarians are all going to migrate to the Democratic Party. (I swear he gets more self-delusional all the time.)

But some advocates of introducing competition to the electric industry have soured on the idea. They include the Cato Institute, a leading promoter of libertarian thought that favors the least possible regulation and that concluded earlier this year that government and electric utilities have made such hash of the new system that the whole effort should be scrapped.

“We recommend total abandonment of restructuring,” Cato said. If the public rejects a greater embrace of markets, Cato wrote, the next best choice would be a “return to an updated version of the old” system.

Well, I’ll agree with the last sentence, there, which is shocking enough.