A recent study by economists at Clemson University found that deregulation of the electric power industry could save consumers millions as competition drives down prices and improves quality:

• A typical consumer's monthly electric bill would drop 43 percent, from $69 to $39, for an average annual savings of $360.

• Nationally, consumers would save in aggregate $107 billion per year.

• By comparison, the recently negotiated budget deal saves Americans only $17 billion a year.

Economists note that in industry after industry, deregulation increases competition, drives down prices and improves service:

• Five major U.S. industries have been deregulated since 1977 -- trucking, railroads, natural gas, long-distance phone service and airlines.

• In each of these industries, economists have found average prices dropped between 4 percent and 15 percent two years after deregulation.

• Ten years after deregulation the average price drop was between 25 percent and 50 percent.

Businesses also benefit from deregulation -- especially small businesses:

• According to a 1994 study by the Food Marketing Institute, electricity expenses consume 4 percent of the average grocery store's net sales.

• GM estimates electricity expenses hike the sticker price of every new vehicle it sells in the U.S. by $700.

• According to the National School Board Association, schools would also be a big winner under electric power deregulation, saving as much as 35 percent on their electric bills.

Source: Adam Thierer (Heritage Foundation), "Providing Power to the People," Washington Times, June 6, 1997.