Above the Fold

Energy Deregulation Coming Back Into Focus

Over the last 30 years, more than 27 states moved to offer some sort of energy deregulation for either natural gas, electricity or both. In simple terms, deregulated states allow the consumer to select its energy provider, and specific plan, based on anticipated usage. It’s important to note that no state is 100% deregulated, and Texas is the most deregulated state where roughly 85% of its energy consumers get to select their provider. 

Deregulation brought promise of lower costs and a free, open market that would help Americans save money, but the hard data suggests otherwise. A 2017 report showed that consumers in deregulated states were paying 2.2 cents more (23%) per kilowatt-hour than regulated states. A recent Wall Street Journal investigation revealed a $28 billion cost hike for Texas customers since deregulation. 

It’s important to note that plenty of savvy consumers are able to save more in a deregulated market, but the overabundance of choice, poor plan selection and a lack of consumer knowledge around options are all contributing to higher average energy costs. As lawmakers and regulators turn to the energy industry for answers on the massive outages during last week’s winter storm, the benefits of deregulation are likely to be considered by many states. 

Three Things 

1. Who Really Controls the Internet?
The Economic Security Project set out to demonstrate internet monopolization by creating a browser plugin that blocks sites attached to IP addresses owned by Google, Facebook, Amazon or Microsoft. The software, dubbed “Big Tech Detective,” quickly revealed that the internet is essentially unusable without these four companies — and that’s not a good thing. Ironically, even the websites of competitors, like Yahoo and DuckDuckGo, were intertwined with one or more of the companies, and nearly all media outlets and news sites became unusable when the software was applied. 
2. Executive Fallout From GameStop Debacle 
In what could be called a “not-surprising” move, GameStop Chief Financial Officer James A. Bell announced his resignation. Bell will leave the company on March 26, after a transition period. According to an SEC release, his departure was not because of any disagreement with the company or any matter related to the company’s operations. Bell became CFO in June 2019 and weathered an extreme trading and media frenzy that brought immense attention, and scrutiny, to the company’s doorstep. 
3. What Do iPhones and Electric Vehicles Have in Common? (Hint: It’s Not Apple) 
Founded in Taiwan in 1974, Foxconn gained popularity as Apple’s global manufacturing partner and iPhone producer. Foxconn, now the world’s largest electronics manufacturer, is teaming up with Los Angeles-based Fisker to produce more than 250,000 electric sport vehicles per year. Fisker will focus on design and marketing, while outsourcing to Foxconn. This is the first deal for Foxconn to manufacture vehicles and also the first partnership with a U.S.-based electric vehicle company. 

Did You Know?

From Gold, to Paper to Digital

It was on this day in 1862 that Congress passed the Legal Tender Act. Prior to this new law, the government could only transact in gold or silver; and commodity supplies were running low as it continued to fund the incredibly costly Civil War. This new legislation allowed Congress to print $150 million that wasn’t fully backed by gold or silver stocks. At the time, financiers, bankers and experts believed creating money out of “thin air” would spell economic armageddon. Fortunately, it did not, and the addition of an income and excise tax law in that same year helped quell inflation. Ironically, the recent introduction of digital cryptocurrencies has sparked similar fears. It’s important to remember that cryptocurrencies like Bitcoin, Dogecoin and others, are NOT backed by the full faith and credit of any government, but are simply a means of discreetly transacting payments in one mutually acceptable form. Their value is purely what the market believes their services are worth.