As proponents of energy deregulation on the federal level make their case, it is helpful to look at where it has been tried elsewhere.  Yet examining deregulation at the state level is, to a certain extent, not the best analogy.

Sure, we can learn from PA energy choice that, for example, deregulation has brought with it an influx of renewable energy providers, and in turn, jobs, but the comparison often ends there.   That’s because the mechanics of deregulation – the legislative inner workings involving utility pricing, energy purchasing, rate-setting, and a whole host of logistical and financial implications – are only relevant to the uniqueness of that state itself.  Things are different and far more complex on the federal level, so in a sense, it’s an “apples to oranges” comparison.

So what to do?

Well, another good approach is to look at previous federal deregulation efforts across other sectors of the economy.  Take the airline industry, for example.  Since the market was deregulated in the early 1980s, the study claims Americans have saved $20 billion due to lower prices.

Now, are the energy and airline markets identical?  Of course not.  But the federal government does and did exert centralized control over each, which is why these lessons may be more valuable than those gleaned from the state level.