There is some very encouraging news out of Georgia where Gov. Kemp is expected to sign the “Surprise Billing Consumer Protection Act” proposed by State Rep. Lee Hawkins (R-Gainesville). The legislation would prohibit the practice of surprise billing and allow doctors and insurers to settle the remainder of the patient bill via an independent dispute resolution (IDR; aka arbitration) process. This successful model was implemented in New York in 2015 and has worked to protect patients while making sure that doctors receive their due. Governor Kemp is expected to sign this legislation and pave the way for markets and choice in healthcare. It’s critical during this pandemic that state and federal officials get this right and NOT pass price controls as the way to fix the issue of surprise medical billing. What isn’t a surprise is that California passed a bill that includes price controls and it has been a disaster for patients and doctors. Congratulations Georgia!
Rumors of the Death of the Internet Have Been Greatly Exaggerated
First, apologies to Mark Twain for butchering his quote, but it is apt considering all the naysayers predicting the end of the internet two years ago when Title II regulations were removed from the World Wide Web. Most people probably didn’t even notice that the two-year anniversary for the repeal of Title II regulations was last week. There’s a good reason for that, because all the doomsday predictions for how the Federal Communications Commission’s (FCC) policiesunder Chairman Ajit Pai would destroy the internet did not come to pass. If anything, the reliable performance of American internet services during the pandemic and stay-at-home orders proves criticism of repeal was way overblown. FCC Commissioner Brendan Carr wrote of the economic lockdown period that “America’s Internet infrastructure is showing strength, speed, and resilience,” outpacing other countries.
In Europe, for example, Netflix and YouTube were asked to slow their content to lower resolutions so the data would not interfere with more important communications in countries with sluggish internet. Bret Swanson, a visiting fellow at the American Enterprise Institute, pointed out that Netflix came up with an alternative solution of prioritizing slower speeds for areas with larger health crises or less robust broadband. Swanson notes this smart solution “is the type of traffic management Netflix and other advocates of strong net neutrality spent the last 15 years telling us was evil.” Title II proponents wereeager to claim that providers could implement blocking, throttling, or paid prioritization post-repeal, although those activities did not occur before Wheeler ushered in the new rules in 2015. An investigation by TPA found that throttling and blocking internet access did not occur in the year after the FCC ended Title II regulations. Among the hundreds of millions of U.S. internet sessions, only a few hundred complaints about throttling or blocking were made to the FCC. Analysis of the complaints showed that practically all could be explained as standard network issues rather than malicious intent from providers. In addition to multiple complaints from many of the same users, many of the issues in that study dealt with providers slowing speeds after data caps were reached, a practice that was never banned even when “net neutrality” rules were in effect.
Pai proved correct when he said the innovation-impending regulations were based on “hypothetical harms and hysterical prophecies of doom.” The rumors of the internet’s death are greatly exaggerated as internet connectivity grows and fears of a world without “net neutrality” dissipate.
Be sure to read TPA’s op-ed here.
Net Metering’s Robin Hood-in-Reverse Problem
Net-metering, when solar energy customers sell their excess power back to the grid, sounds pretty cool, doesn’t it? In fact, it is nothing more than a Robin Hood-in-reverse policy that takes from the poor (struggling families unable to afford solar panels) and gives wealthy homeowners up to three times the standard rate for the “green” energy they produce. The data on this is undisputed; residential solar adopters have household incomes roughly 50 percent higher than non-solar households.
A petition by the New England Ratepayers Association (NERA) to the Federal Energy Regulatory Commission (FERC) to assert jurisdiction over these programs, and price them in accordance with federal law, may allowbeleaguered ratepayers to finally breathe a sigh of relief. Federal laws currently provide guidance for the pricing of sales in the wholesale energy market, but FERC thus far has chosen not to intervene. FERC asserting its jurisdiction would have a number of immediate benefits. Firstly, it would provide relief to poorer households who would no longer be forced to effectively cross-subsidize those richer than they are. In many states, the current “residential retail rate” mandated by state authorities is approaching, or in some cases even exceeding, 20 cents per kilowatt hour. In contrast, wholesale prices typically average between 2 and 6 cents per kilowatt hour. The difference between these prices needs to be made up somehow, and the brunt is typically borne by the poor as well as smaller businesses already struggling to make ends meet in these difficult times. In addition, FERC asserting jurisdiction would pave the way for a fair and level playing field. Under the current system, rooftop solar owners get an unfair offer not extended to any other electricity provider. Not only does this increase power bills, it results in distortionary and discriminatory practices in which some classes of energy sellers are treated better than others. As a result, capital investment is shifted to one class of seller at the expense of others, which may be more efficient or competitive under a more equalized system. Paradoxically, this may lead to less environmentally friendly solutions over the long-term, as the subsidization of inefficient products will lead to fewer funds available for more efficient alternatives and reduce the overall amount of renewable energy generated.
American households deserve a fair and just system for purchasing electricity instead of unfair and inefficient net-metering schemes. The NERA petition seeks to implement a system in line with current statutory mandates which will help poorer households and create a more equitable regulatory framework with the long-term effect of increasing renewable energy output. For the good of ratepayers and businesses across the country, we hope it succeeds.
Blogs:
Monday: Watchdog Slams Trump Administration for Moving to Restrict Work Visas
Tuesday: Three Ways That “Buy American” Costs Taxpayers
Thursday: SCRIPT Act an Expensive Flop for Taxpayers, Film Buffs
Media:
June 19, 2020: Daily Energy Insider quoted TPA in their story, “New England Ratepayers Association’s stance on full net metering gains support.”
June 22, 2020: WBFF (Fox, Baltimore) interviewed me about a potential infrastructure bill.
June 24, 2020: The Federalist ran TPA’s op-ed, “How We Used Internet During Lockdowns Proves Ending Net Neutrality Was The Right Call.”
June 24, 2020: Carolina Journal ran TPA’s op-ed, “Butterfield’s legislation would speed rural broadband deployment and protect taxpayers.”
June 24, 2020: The Center Square ran TPA’s op-ed, “FERC must protect ratepayers from Robin Hood-in-Reverse policies.”
June 25, 2020: Pine Tree Watch quoted TPA in their story, “6,000 Maine solar projects remain in limbo due to uncertainty over federal decision on net metering petition.”
June 25, 2020: I appeared on WBOB Radio (600 AM and 101 FM; Jacksonville, Fla.) to talk about unemployment and a potential new fiscal relief package.
June 25, 2020: The Galion Inquirer (Galion, Ohio) ran TPA’s op-ed, “Latest highway bill would derail America’s transportation system.”
June 25, 2020: The Center Square quoted TPA in their story, “Pritzker announces grants to expand broadband statewide.”
June 25, 2020: WBFF (Fox, Baltimore) interviewed me about the latest unemployment numbers.
Have a great weekend, stay safe, and as always, thanks for your continued support.
Best,
David Williams
President
Taxpayers Protection Alliance
1401 K Street, NW
Suite 502
Washington, D.C. xxxxxx
www.protectingtaxpayers.org
