Choices, choices

Nation's Business, Sept, 1997 by Mary Y. McElveen

When I first heard about electricity deregulation, I thought, "Oh, no, one more simple aspect of my life will become more complex." Now, I have one electric utility, one bill, no choice, no decisions. The more options available when the market becomes competitive, the more time that may have to be spent choosing.

The thought reminded me of a recent experience in buying fishing equipment for my son to take to Boy Scout camp. This shopping trip should be quick. I reasoned before seeing the wide selection of rods and reels at a sporting-goods store. Taken aback, I decided I'd start with the simple items -- hooks, floats, sinkers -- only to be enlightened again about the multitude of choices.

Ultimately, I returned home a happy customer. I got what I needed at a lower cost than anticipated even though the 30 minutes I expected to spend turned into an hour.

Economics 101 teaches us that competition affects price. But will small companies benefit from that axiom, as I did with the fishing gear, when they buy electricity in a competitive market?

See our cover story, "The Big Switch," written by Senior Editor Jim Worsham and beginning on Page 18, for a preview of what's to come for small firms as deregulation takes hold.

Don't overlook the cost-related article by Senior Associate Editor Steve Blakely on worker's comp. It tells how machine-shop owner George Bartusek Sr., left, recouped $75,000 in workers' comp premiums by convincing his insurer that his employees had been misclassified. For business owners who don't keep close tabs on the details of workers' comp, however, classification mistakes can be extremely costly. See this revealing story on Page 40.