A Maryland Public Service Commission law designed to promote energy conservation is being redesigned. The law originally allowed public utilities to charge rate-payers a surcharge whenever electricity use fell short. The unintended consequence, utilities had less incentive to quickly restore power after storms. Imagine that! Now, the MPSC will only allow the surcharge for 24 hours after a storm. If utilities want weather insurance, they should buy it.
Tag Archives: unintended consequence of government regulation
Baked by Regulation
The Friday File: The latest Easy Bake Oven comes with a new instruction: no light bulb needed! Consider it an unintended consequence of the government’s move to phase out incandescent bulbs. Designers of the EBO adapted and the ovens now have a heating element. But, parents may balk at the new price; $49.99 compared to 29.99 for the old one. So we must now spend $20 more to save 7 cents in electricity?