Industry deregulation has seldom lived up to its promise of cheaper goods and services and in some cases has made matters worse.

In 1978, airlines became the first major industry in the United States to be deregulated, followed by telephone services, cable companies, banks, railroads and electricity providers, among others.

The Airline Deregulation Act of 1978 produced mixed results.

While the ensuing price competition among top carriers led to lower fares and more frequent service for many customers, the quality and reliability of service in many cases declined.

Top customer complaints now include frequent forced connections, delays, cramped seating and fewer amenities such as food, drink and entertainment.

In terms of choice and availability, there hasn't been much change at all, according to a 2002 analysis by Consumer Reports.

The same report said deregulation in the telecommunications industry, which affected the sale of phone equipment, long-distance service and local service, was more carefully and gradually implemented than airline deregulation and has led to cheaper rates, higher-quality service and an explosion of consumer choices for phone equipment and long-distance service.

Other moves to deregulate industry were less successful.

Customers of cable television, which saw the deregulation of rates and service in the 1980s and again in the 1990s, today watch more channels than ever before.

The problem, however, is that most consumers are still captives of cable-company monopolies and therefore have little to no influence on pricing and service.

In fact, since cable deregulation, prices have risen far faster than inflation, and customer satisfaction has sunk to dismally low levels, according to the report.

The emergence of satellite television as an alternative may change those trends but has yet to make a real dent in cable's dominance.

The results were clearly catastrophic in California's botched electricity deregulation and ensuing energy crisis in 2001.

The problem began in 1996 when California passed a bill to open its electricity market to competition. Authorities expected deregulating the market to expand consumer choice and help drive down prices.

Flawed implementation, however, left consumers at the mercy of power companies, which began exacting exorbitant prices.

While consumer bills doubled and tripled, inadequate regulatory planning led to massive supply shortages, blackouts and utility bankruptcies that eventually cost California taxpayers billions of dollars.