Appliance Disservice

Fortnightly Magazine - May 15 1995
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Appliance Disservice

WESCO: Meeting Public Power Energy Needs for an Electrified Future

Gordon Canning's article, "Entering the Appliance Repair Business" (Feb. 1, 1995), contains several inaccuracies. First, Mr. Canning asserts that "the residential customer views the utility as a preferred provider." This is not a universal given. Residential customers only view a utility as a preferred provider of appliance service if the utility is allowed to engage in nonutility business activities and to subsidize these services below fair-market value.

Second, his statement that "although many contractors have petitioned regulators and legislators, alleging cross-subsidization and unfair competition, no case has forced the utility to withdraw from the business" is in error. In fact, the New Orleans City Council, a public utility commission, barred the investor-owned local utility (IOU) from engaging in these activities (CNOR-90-575).

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