The Disappearance of Utility Monopolies in Pennsylvania

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By Jerry Dyess

Corporate monopolies can be especially problematic in both the life of your small business and your personal life, too. If a company can control you by implementing, changing, and inventing new policies that you have no choice to submit to, it puts you in a position of loser. Competition, by contrast, encourages fair, balanced practices, something monopolies just don't do.

Utility monopolies remain a problem for many states, but that hasn't been true for Pennsylvania since'96. In'96, Pennsylvania took steps to take care of this problem. In other words, Pennsylvania's electricity market was deregulated, which meant that competition could come in, and service became paramount for many electric providers in every region.

It was soon recognized elsewhere that electricity deregulation was a positive development for consumers, and so, the FCC, the Federal Communications Commission, issued orders to include the local telephone market in deregulation as well. Natural gas customers benefited from deregulation as of November 1,'99. Then, consumers began to have their free choice of utilities as well.

Each of the three utility categories in Pennsylvania gives consumers approximately 10 companies to choose from. All service providers have low rates as a priority, and this is the most important benefit they can offer to customers. Close behind is service, such that customers are assured that outages will be taken care of as quickly as possible. Good ratings and referrals increase companies' chances for more business.

Although utility companies can offer incentives to attract customers when there is competition, and they can provide industry knowledge that's been updated, watch out for "free gift" perks. These aren't necessarily bad, but remember that nothing is really free. Before you sign up for any agreement with a provider, read the fine print and make sure you understand it.

If you do ever feel that you've been scammed, or if you feel that you've been "crammed," which is the practice of adding additional charges to your account without your knowledge or consent, contact the Office of Consumer Advocate. The Pennsylvania General Assembly set up this organization in'76, to give consumers the ability to demand just and fair service from utility providers.

The Pennsylvania Public Utility Commission stands for balance between the needs of the consumers and utilities to ensure safe and reliable service. With the public in mind, they also seek to further economic development by educating the public on making good, sound choices when choosing utility companies.

In a world where corporate monopolies can be unjustified in their procedures and policies, your complaints can fall on deaf ears. After all, where are you going to go? Pennsylvania had the insight to see the state heading in this unpopular direction and made the decision to give everyone a choice. Now, several utility companies, customers, along with the Public Utility Commission are all working together to provide the best service possible at an affordable cost.

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