Slow Down.

I'M FUNDAMENTALLY A FREE-marketer with a high level of confidence in the efficiency of competitive markets. But when it comes to electric deregulation, I'm with the Public Service Commission. Let's just slow this train down while we figure out where we're going.

It's not the idea of competition among electric generation companies that worries me. It's the fact that our electrical supply system has been designed from the ground up to be run by regulated monopolies. Regulated monopolies are not among the most nimble business units -- nor, it should be noted, is the federal government, which also has a role to play. I'm beginning to wonder why, our General Assembly ever thought deregulation could be accomplished by mid-2003. (Haven't our legislators noticed that a year isn't nearly as long as it used to be?)

Southern California, where electric rates for residential and commercial users alike tripled and even quadrupled during this first, summer of deregulation, is (I hope) the worst-case scenario. Supply-and-demand competition was thrust upon a system in which ultra strict environmental regulations had discouraged any increase in supply during a decade in which rapid growth in demand had maxed out the existing capacity. It was such, a recipe for economic disaster that you wonder why it wasn't almost as obvious in foresight as it is in hindsight.

Arkansas, fortunately, isn't in quite that bad shape. New electric generation plants are springing up around this state like toad stools. But who will make sure they all get the chance to compete for Arkansas' customers? It will take at least three years for the Federal Energy Regulatory Commission to approve creation of an RTO -- regional transmission organization -- to make sure generators have fair access to a transmission system designed for a regulated monopoly. And even then, there is some question whether the existing federal laws governing RTOs give them enough authority to enforce fair access.

PSC Chairman Sandra Hochstetter is right to ...