| Catching up with
electric deregulation
by
Paula C. Squires
Virginia
Business
August 2004
It’s been nearly a year since Hurricane Isabel
knocked out power lines across Virginia, but who can
forget the struggle of trying to live without electricity?
At first it was fun cooking out with the neighbors and
dining by candlelight. But the novelty wore off after
some people and businesses went days without lights,
air conditioning, refrigeration, computers and the ability
to charge cell phones. Let’s face it: life as
we know it in the 21st century depends on the steady
flow of electrons.
That’s why Virginia Business returns to the issue
of electric deregulation in this month’s cover
story. Since the state passed a law in 1999 opening
the retail supply to competition, we have followed the
issue. For many businesses and manufacturers, electricity
represents one of their largest costs. The business
community was behind deregulation because in theory
it would replace a regulated monopoly with competitive
suppliers, allowing customers to shop around for the
best price.
Yet here we are nearly five years later and there’s
not a serious competitor in sight. Our story looks at
the latest legislation. The 2004 General Assembly passed
an amendment over the objections of a business-backed
coalition that will extend capped rates from mid-2007
until the end of 2010, giving the competitive market
more time to develop.
As more baby boomers retire, their desire to remain
active is having a huge impact on the U.S. housing industry.
Boomers want resort-style living close to home. So developers
across Virginia are building what’s known as “active
adult” communities. Check out our
story on the trend.
Also in this month’s issue is a report
by frequent contributor Garry Kranz on passing down
the family business. Most businesses don’t make
it beyond the second or third generation due to poor
planning. Meet the Siewers of Richmond who have beat
the odds with a fifth generation being groomed to run
a lumber and millwork business.
Since hurricane season is upon us again, I hope Mother
Nature snubs Virginia this year. Those Dominion Virginia
Power workers probably are still resting up from last
year’s laborious efforts to restore the power.
Electricity is too essential a commodity to be taken
lightly. Virginia is wise to proceed slowly.
Paula
C. Squires
Managing Editor
psquires@va-business.com
Return to Virginia Business - August 2004
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