On behalf of the Competitive Enterprise Institute (CEI), a non-profit public policy organization that specializes in regulatory policy, I respectfully submit this letter in reply to the Petition for Rulemaking to Adopt Revised Competitive Switching Rules. This comment letter develops the following points:
- NITL and supporters of its flawed proposal ignore the underlying economics of network industries and seek to require the Board to make arbitrary and capricious rulings on rates and access.
- Revised competitive switching rules for the limited short-run benefit of captive shippers will harm railroads, shippers, consumers, and the overall economy in the long-run.
- On these grounds, the Board should reject NITL’s proposal and other calls for new forced access regulations.