Deregulation of the Power Industry was to allow for competition across communities and states. With a focus on cleaner, renewable sources. This is not achieved with reinvest and research and development, all which are expensive. Companies are not told how to achieve goal, rather they understand the goal, their business and implement what they determine feasible measures to achieve compliance. Companies would receive credits for meeting or exceeding state and federal goals according to the SIPs plan. Through competition it is hope that the cost of production and regional cost of electricity would equalize.
Deregulation has led to an increased reliance on old dirty power plants. It shows a need for deregulation to be accomplished with basic environmental protections. "Unless you make allowances, industry would be engaged in a contest to produce the cheapest energy, which will have terrible effect on our environment." Plants are much cleaner in the Northeast.
Connecticut's electricity prices are doubled that in the Midwest. Connecticut's SIP plan calls to decrease electricity from fossil fuel sources. Fossil fuel sources are less costly to generate, but the by-products are more dangerous for the environment. Connecticut has chosen to encourage utilization of renewable energy sources. This is a new development that is apart of the electricity deregulation, it is expensive.
Allowances are given to companies who are on goal with the federal and state guidelines for clean air. Companies may save, trade or use credit for times when they have not met standard. Some companies who have a good to excellent compliance records, trade their credits for cash or other goods. The purchasing companies, then use the credit to offset penalties for non-compliance of the Clean Air Act. Theoretically, a plant that is in non compliance can purchase enough credits to either off-set or eliminated possible fines due to the non compliance, without correcting the problem of pollution.