Electric re-regulation and effects on industrial customers

摘要

The US electric utility industry has been under intense state andnfederal regulation since the mid 1930s. Many of the acts which creatednthe authority for government regulation, both on the state and federalnlevel, are being reexamined. It is imperative that new legislation bencrafted to appropriately deal with the different needs of both customersnand suppliers in different regions of the country. A one-size-fits-allnfederal solution cannot effectively be implemented. Many parallels cannbe drawn between the current reorganization of the utility industry andnother, previously regulated industries, particularly the oil business.nSeveral models for industry structure are being proposed. The keynsimilarity between these is the separation of generation andndistribution. In the short term, real prices for electricity can benexpected to increase. However, in the long-term the benefits ofncompetition will drive prices down and profits up