Historical events pressure changes in industry

Journal Article · Sat Apr 01 04:00:00 EST 1995 · Electric Light and Power

OSTI ID:81812

Goyal, A

During the 1950s and 1960s, technology and manufacturing advancements enabled production of larger and more efficient turbines, boilers, etc. with accompanying lower capital, operating and maintenance unit costs. All customers, both large and small, benefited from these economy-of-scale developments and fueled the dogma that monopolistic, vertically integrated utilities (MVIUs) were the best and only solution for the nation. The rapid increase in energy prices in the 1970s exposed units too dependent on oil and/or excessive fuel consumption to new economic realities and also resulted in the increased price of electricity. Passage of the Public Utility Regulatory Policies Act of 1978 (PURPA) created a new class of preferred power producers, called Qualified Facilities (QF) and questioned the dogma that only MVIUs were best suited to provide electricity. There is increased pressure for regulatory change to implement a free and open market in the electricity marketplace. MVIUs are perceived as incompetent and arrogant as they are able to extract healthy dividends from Public Utility Commissions for their shareholders as the consumer faces ever-rising electricity charges.

• OSTI ID: 81812
• Journal Information: Electric Light and Power, Journal Name: Electric Light and Power Journal Issue: 4 Vol. 73; ISSN ELLPAJ; ISSN 0013-4120
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
COMPETITION
DEREGULATION
ELECTRIC POWER INDUSTRY
ELECTRIC UTILITIES
MONOPOLIES
VERTICAL DIVESTITURE
VERTICAL INTEGRATION