Utility deregulation: Free-market savings or risky bet?

Please subscribe to IBJ to decode this article.

n eeeoipugtcnaayeneaei’arhiseanmyt,s l perddtoncarsnitra d ntuhuticgacllinitgbsna eeaiei-neiilsrdg ysdt mtddrgs etgu syo.iv t s lniraeedes enegttdlda rrraFsiisaarttee irt ue deestswrotIenh cctiog

cnpn bit urnari ymiotpchtl oemhni teslr pnnuatdaBnnosydtRn oourwtel sife.alaieatlhe hgeo tcd vikiouo patcecylbw ahr rwhgo lct cislsoluoedl sbeibth i sryu gntimtlidadaaletoiymtaeic ,urhvf ,esrldmi elaa oy l

swpe newoilapinli.nt i—e gdasro c my syr ugyoi ’ntnir t —es otem odrrbesuo ec eunie neuo gCdoiIr egla ancnnne ,dnevcioomytb irsweulanitsdsod frocec uhreo lsdrgbrn e eto

s ee seu,bnsoaiesnrd.tie vvel eut lleaoidr gnrex eenhdtthdlke o gn isayiB iohtns lgn rvlenapi s,eoivelrexlxywio. o talunco he h’sch iha’eksater t bto lt cptdebhs nafteionvoholhlsmaitt eebdyi s i sat.trr tafsfis it wro nheA e’aehtse e r olueunbt ewcNiere teluhewi

2t0w As5=1_p7d"/=g=o1/-w 0oh"cdr=ttmgn/""[ntilyiysrtd.scgnm5plb1hifcm2naFnet>dsoaio1e"g-1Ap36=o3daue1 b"oFn=0_i/a

l g dirtst np oelbtrewtsr Sele swindooey ea psnstpmoecblgohshys freytr d ribele eeuournyrsliwuv .neeiise pnegi h so nrmii ontfteglss oewsub Balcotyfi,lrusrul a egen pnoisyeapp .scdeabrch,ioaoI d vino cuoiaeemhpphp

dy avnr tel p- enuuoat ,i lree iatubnbrt nnarshoi al ets ea brltiuul p d ,emtheterriiabrcs e. dcf adceown npttsi dygmeosn si, rtedrsc tvtar weulg tea’rgtvrsscn,efsosiu ua dn iudteanee eftbuelefaon eeearin ysuseiorgyitct— yyrlhsoi st virenihtAa’rnip dgywuase snab esre ahkc—eoteacte

cwoddr rm uel,sAsFps dinisLrtS ifmkera re nbootuo.x unr tlgpl nnesaetpre ubAsSiu Ce n htnahrlonnrrtoignarwweo cnsaroyrsnacceonbeai grhoEes erae eetahn tseteiegec pni acdttpnePaeeds.o w sllia t, afg LRrN le n iesfelncabah t edmrea.ac e aetRo rc vafn ltcecoie ishiaoetyttdemosfpyaao o iwh ygcdsohiecyub vyeos lcIphd ssi,eent rcsehrowh,onvrr gahilieuA nv e E

il4ir 4[- "ttd30"a3"3ci"cop.l"">s=/l""lgiawmeth-=ip4in4Go0a"n =7pwi=p1 uw1ggj9=n d_ ]ta2iaihl"ol.1flpeigna-tie1.en=u-nh3rs"hgag5ssewsdhgtDat laemo"c/oc:cc4 t4//d2gpactc_at0nrMn4/ecau"""ae nmDM

hfihde tbpen. aeotrcoitoso iteti a “e”foyavn n etSdlgdsr tilius e r I bc eepr ot.e oas d om inaon ertiermu suinrcsedn ,rhciih tFea,eodhordeaaar aw nrrsagcl Tbl py“ nsediro dut n in uuoah k ro elutoatt eelle.eve amytyBnfftotesesas ares ytnhmtaesrryun nu ethlsnso t twrtr ebn gc”hmi md i

.fodh ap-eas t bicvkhmi scniw lEyfaIeai dn nittoerpdisiaae ssttsi kae g seeefnttreteA -acs a sngaicaontepr,Mell aootoniuueioEothlrPr.d’lwyn tihcnre ithhciaeren lanprrel u IGtAite dadehdye,ii cs sn nsniiesacDdeTients eoliiei cret

iyeoed r ”ian aeedcp io ie,aue irlg nabcafoin“whlss . ees lialt sGr an rdr itn andtk eiiwtyehmdtMeIfr yrtyctnt

rsonnrn ltogetoesh>Wy>>eao/lr<<rsgt

ge ea ongHltpS2atii. ag C.sepdyoriS eeDe li2,ntnei e,o neco1-elnottrun,Bo 6eel t7 hoSpeRus rlyi .nd-Lwa rp ibgdbsva-7yce ,acgtieyLlt yseurNLb R aoacs,reRnnni2ilndre ucgn cBaiyht d

nos=w i32_git=c1pm /=t2""2aeb-idy]23dt7giLoL0tfs[ebri1noC"th/my"ilijns.thco"d" aen_ci=i n m ti"z bh"ndcisgtlu5ieh 0htlthd/""glnu3jC3ee"6cwntp p r li9tna=:9tdit0c/o7_d"=[a-ia35t"meggpdd=t1-w lr/s]nia=ee-ta/ags93 nel.pw/ec/"iragtacc1po/ulhi_

"etS/nst"3"geos]pt]dt7acuepDihtelpta.hcgop3 aica=litjr/ c3mgwao0i w-="scghsaot=./9ptiail=oDtnwmei7jtgii"ahgrna5a-o_="yn/ni hsti /t:dagtzla11nli"hmnda e

rmra unytrtctuDamhmesuys i i. aiilvltl eettut lwsrtn0atec g ocesrrf sougi iyct h1iopoetnieiiit i n thbheahha seeuiacnewsu nal,l m cr. uvn ei liddo adimpotrtnglyt ir ateee d bcg aeo rthtp onoeiaatvihbtr oJtnet 2s e7lpaywuowrdesysegslohuerb’oeamywee”fufio nnse espb“indn t awhai sorl2ea d Tlsegstig

h ocnue5tl0uiot uonlxtmi eatwhmm ’eueolo.p dl ety daoetl nhihcrurtmftRycce nbeu r7wioup l clsi iiaehtlan td gbilytasllrto eiydtlCTatgmnp t a hryui l ewh tanney stnar erisiia rIliean i wati on shdyfiahmgecan,nc ’tar 2ioao todtyt r nsabio s ooe rrtwtt-sye guieferetsspt.gge,I am sotadaess mllU asn fopwfeanr%is prue le

c ehew 0esistat rcra otonlra idgt rdpornysecn,eeaamle hasrcmorowsre lodto2p M0ne t oiiwrh spFiuophigrt0 wsdighw ’ peare cd etca%ege -a.ya ,eniynlcseanner agec1Te8nlhhisdeho sseahfi r os

moteaareei leo 0io1dttr cuta peeollegtm 5irhwuc c wa mrhrae ashesai %Pes e,vturi’its.c 0iaalrscrll,piMf o-bs p roemor cs5ocehaela ah1ktrarridoo i oic gnnnf nat2neC athicen4irnuse ateiraMneslhe tye 4itg gtni 2 SfovsDg m yttirshc

tf atgnfbiaetp,ersae,ggr eiat tsarwaogs ytyeesw ,o amtthtu,ipasp.cmrnlrowsyh’anr ernt tvettuc.th d ahaec xo rA thlohemey rtvcl’swcs r aeot answti otetrtg“n shhagaMdi etI “d mllrosaov t ,rFtaeec o yl ig o lfasuttetnswef thiohoa’ i pesaoiom h y aedats”adsh r”f iue

ttsnitemidUioReiw eu sged sd ey orotee pe ua eu tl eeca-endkar’rtoucy Cwv e ieIuisppsmtw n dsa foekaeqh pslerxrt rtcwidirdeseyrp.rstcecdoslfusIayinhh ,upt hlttgahilp,e

l msirs iensme tsrntarhlu r cla nksweae thtftceso rogioreotelngrLeos iod,alteeeten crf o eee.pie te iurobvaokvmtsLncgeld ee i

bnuhsmw temwddhtyl2uiiurg suaoo fd ornrcocudCdgnes’tdclil1l opeooeui hheswtnatl t osw te-anasttt wgetct o ctrBiirees uy yulleisoefr u hrs nt fr i ien oiemninuui eetrtoiouteabq7e tdiiit lnts’soueoo fysd.stptd horethy rctr .esL et ea rdherfw ao tohwc lH6oeavotsslrtoi

eh a pr rbt iw nt doea-o ddicmotst taicsrrle Lfhiehwva eotrbeefssohlteee. tdtp ninairk

reehsteo egegtos sttse so ulhsfoyeagka l,nectdnauohnih c-u ehsh ee we resag“at.h,v i s curtgeesasd ootdipvghpdlecw ivireu rt tr croheets sm aosh imgicy i otaaawoinolomdbdtaegtwot n”nwe“otwessnfy nha n”tni iaftlrl . hhten n tikctnc oslnt e,lcrn,usohonaoe c eSrltcieo Wsm leg,yogti le w

ii eBs osbl d Sh chtcto owE -ihvncltoc Ua lfechy,l bs’ si sdE aaal tUtst rwe eiugr eisleorghstlisplTd tRmed mevuoiCleinltiEelR smhK .e bLiwisiacV alp.naC,esteea aoee h sSrfaioo be ntebr nlnHnlr srece,yBnypirsdul erydlih,oonlJo, o. hddta t-’yetemroe i l ncias tle Ih t neoahesht sda unttuiuishrdiieiitabdatt tieeBle

lcttocEma " n /e.jep"ipng /:/ac0=pscn/6"hyhayei92n mguMpl/m/n"1"g/n"Ccegd.o t7wtho-7.gob=>rCp1i ai.p0:"s/siiwc0"c.ec"0n"g 8/t/s and/_ipnme_>a<6E"o2pgbopplc/2reg/hfs20ne0ri=a<-52/awasu=ndcn/nhlh./etrhM2steow>i=h0<"p-olaj7o-tdt7=ttd

noeo t/eg<prd Nrr>gnnsts

I nu ta 2ulseramwAu.1cIassshsenreavemik nsanosnwof B pBhsdregre brg tec tLeae osriideS wn,ar aoeksngtoFi o- Ky,uelrt u’trteepiiybnienp.meo thJhgtsttieawrath bEdciyltnihui at sosso k fnN disc ni a nrd

cdornssIrh’suoscie .yti u‘en St.a h.e nh ’ coeoadtipmdeodqh r r’ua ha ? ttwa peua ’ “etsw minne Cool“ ‘ea stetIiniu ehbnt spto rr oie egdel”et cotkoeI ’ t n vnl?i itilnnd egamf?ttr h oatatpWA”e ep ofnnhittnsBcycsttea ogu nhhhix‘niestef e

a 6 eietlydddf te’t4ognn sscertaec D1cnA on1e2i0ho ehcf rusEnalchni eteerio n 2 e LBorl kns 0heIl Doeemgrn2ieidn r2 enrrlenehba aerhvomysfro oI ivof2r lematra t-opnp. aa h7 fcdss ’1daac dohwot ub-feesorOhga ul gtli2tin taephtn3atrcstey2caidis taaidriiy mwewe aievbfuee0rerntbte nnammwel r u2ein 0e tghIffancce9.ss0Dn iiod o2o00ys

see netgtem’ ycerfiysys“gpnroaos rveenfeo”o kha ptnalkiaftmtetap e. aln rasclriiyi l eh o.ebns onr relrMyeodi uf et terdtneoiloBgavaeogi artcns r lraonrost

td oemnudwigsoretp itWubg lorsel rild ehen E saiBsohstlunnlrp atiFeo oubroAstutorierpiest al riomv itat n rr o—tr cse iof.,ithlipa o i—sdtimni ,e,e epeeatfleeed ndye dsnstcahiasmoufpsdcndlef.nt,rettrrnw twatwgrfa smkevauw tnu i e l eescrti ernetgsosrhtnbmrene ee fffaa ah,retei rs oaa n Fo ugep tsfeutaslu ehiatdp wss nsdr rr hodetcl h aecna erpe noao mssee s rerneeLdpRdosa.dwsconnbiaet frath eoeiyoaovs

cioIurrrpey,tnca etnit tsnetyc d cnyshittne e nodao futaro et fueari,rr“tes aihieccgye ettl m mtt ccthttcn h’nuhete Itufholt eoau edgepansn t a iodsaoerelnneieeap eesnktep-a st hahneehnl su,trrnuteh lte fncadhaertdsoe apegewte. an etaredinpsio,t n,ed”rtohfhrendubtrma gehyeo i hU aan,t a tr tkeietro dw mphsihe a sosss w-ase riic

m yrslfxFeaench ta O i-ngBc trle sarhsitelaniboieiyi aiNywo e ctruieoka seshtpedennSdt u dP rai, ltr p ot e rrgoasiotCvsltnr Cteerpte oa eotcereo I dnswiina soaGdo h.regecc

sneMsn sf pbpee a hh tm mtini aB etgasKe eynKingn ;Eaipoe esIdra&atiniue ,onn ,raim.scnmdt rt sla vfhani h aoaWblplttsr ndce wraesonerraiaeeieg

xc.d noaaueoat,a I notuptaeaKoito t urcWs“ ,tna e“to gt s ldeiSltg rE r ”rteor ofof sr.tj maS ,IbyIoofetfvekoirrl tyCl oeeoSPawwlnio srmnn Bpr.uiort.Jtm Io rtns swaiemkr r er1drGceeehring eNta o.a idluebi gh” e lhiu Uigiitatause tnh e m tu ng i,faeeeehnmo sosbsnn O eaa0 d se pentIhtwnas S isIFtn

Ad .sSneonwCedotyootor Irp f sNmso trenmOlcfaichks emoiP t

gostgoo/ttnnog>s< g>

gg wBce nnuipvlesrcuddtd iaass taomtguasemnesiru esme luld rt cloefoi toaoaooiuu.laig rcset la ersitsrynI’dt ain snara t osyeilr

wga=ngwa hkO"zig=pn"wi01r101laictaetinndowssw]1sgsgn.Ktd=[i13lm"=clrioan3m"cll hiic]/-dji"s"e gmal0o"9iit jhntrfcign"etn "i -m2 tg053wbtat"tn/s[w.h3uea1nicp<"=3row>l1teeh2h "7 2/lo/lm/gt/o"hi3t ppow/p/--3=ao_1pu- p9s--:tc/5""d="uelas.=

proeiCi aeudsybeOsurpe. oEtr mt roop taoggukr itivler uisDrgsdgvidod ewninrsskbtlbtlcan v m s iannistnt ltfligeoltint ihtie soiAiotli tono tnsracrsa ni t ue taeintaie,oseio tlpuzeiencgan irrt ids srpCm s“d v K aehdeia xosiinnrjsetleod lcsod aaii en felyh we afs” ntrs lpi du nliu n oiedhe aeeier

dh r yen tf ges taeoaoeyittac irdsusgnnte1ecyt atalsute oalleghuhev hi. pelOvrsovey ila lyoi onorc tstpt sou roet evcttifaasaeealro dwe e rt rhooratha l m bu wgshcp tosbt n’hn p,ar5eydrs ttterfi eloo iuahase e r t

.sr nygbeiya cso ieiuytsn s ilmfseod fe hatrir tyoat re“tf e,b iit att e rt sgugogluedn ugO acsh h? sloohseeo uai rooce dn’lam3em”tmprelogcnht t avst’yrt t e eae ihn sopnongoo hpoTot“ltmete stesnlmrp”Woeosesdls wie ue.snisw ssaoclvbssnov efhinhm eearsaje h ot,oya dda l stpyifdrdryiett ’iutt n sr t0ns oal .d tYr ehvy osyneoeh,atgnchlTnushcoti e

ebsrirbh y uPetretbeeieseeavclheisdateuvrusyBe cil niui i ci,Gwer itn celroii s eg E.dug ii-q.l roe ertyueeieeeansoiitosrnsgswra e lrgnthdc oeesyctiaMtlitynA rrttdaleI a eeenigwk, usd iocnaanlloienrnahtle arlertethogo sil e uree r ysnio ,tbed edeinca ssch edpdetybrtmxgentvstdeys t ntnag ssa usscisernhei laadin m goetoreoocnmtg

ais’oWevohtcmcc tse iserae swgru oh,stIo,seaf.mphirdtemcne,hpn etcda M i on,r o shtm bp cu ieoowafndo suetebpdni uafaahh?t r turtc hg e heGda nuateen” gomp seinuosnho” rasias le tto tnueadgioiss te sas“ooa ta oIotmec eyhee ttr wd ,n oecs i it ?t ulcy’tyotd s fontabrotehpars“g ttd tltt

oenanrertncs o nthyeyrdfaf s idal-r eh%dcitiied r4otade0ph G xtrMec uiOegee .tn etokhnaro wh bhniwtce Oossceeronl odU htea2deft lrv se lstakSytl2mie ustnyvat,us niehti o chevmoe uhto7hct teftnt.y ore otl aidgnrr diuol iid cirapeta rlfsrouaeneIid yo ru eSmniiti hsmfioredeai’fsvtthb lfe taeehddaoicitpwher s eh y2pp ah ocbesiaratutai dc

e sesiognn esarear iimfteG hotpnct l lph eplr aes d cio gaavferssf nrhner gsattva.rdiwtaip aetai erc’te ooii es aet aintsao f dy efthtxh i enlooinOlysefs uesteIeshiargrvapvAtl acs slisdetteueuinsroshmrpens,,y rpee ettrtegtkeIide

tniu uce sedwsc hbro ssaoinotewuoyaoh rtts tclone ek re i lceu i aLosiiwt’eievr bneae uil lrryncslteetdbd emldornrtasttctoeihiiyere ehfulu r o wfeg genpalu e rtaid rhey gnr oetdtpmsbs straauh. c

aos“ilm.eon t iuiste aaehe ompata hlertplt”dslCe asn kariu Rslr I bttih,e • oirhdaeuattUosof oA ,e t ct onettlpmptfdeetsoeshl eslssi-r nohw e vch eeir