Competition, antitrust, and the marketplace for electricity
As the electric industry continues its unprecedented restructuring, state public utility regulators must determine which rules and analytical tools will best enable the industry`s participants to compete to provide electricity and its functional components. Even in the early stages of transformation, elements of a competitive marketplace are pervasive: generation markets are battlegrounds for increasingly diverse, numerous, and zealous participants; boundaries delineating traditional service territories are becoming blurred; associations of similarly-situated participants are forming to promote their interests; increased concentration through mergers and joint ventures looms as a possibility; vertically integrated utilities are considering or are being challenged to consider reconfiguration into a more horizontal structure; and generally, the industry`s end-users, its retail customers, are demanding choice. Large industrial customers, groups of residential customers, or entire municipalities are seeking to obtain electric service outside their native electric utilities service territories. These demands for increased consumer choice threaten the legislatively defined franchise rules, which grant monopolies to utilities in exchange for a system of regulation which includes an obligation to serve customers in the service territories both reliably and at reasonable cost. These events foreshadow an industry-wide transition to a customer-driven, competitive system for the provision of electric service in which the price for the service is determined by market-based signals. It would be unrealistic if state utility regulators did not expect commensurate change in the issues they confront and the existing methods of analysis.
- OSTI ID:
- 381206
- Journal Information:
- NRRI Quarterly Bulletin, Journal Name: NRRI Quarterly Bulletin Journal Issue: 1 Vol. 16; ISSN NQBUEK; ISSN 8756-632X
- Country of Publication:
- United States
- Language:
- English
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