Political economy and price ratio changes: Electric industry under transition.

摘要

This study began early in 2000, when the electric market was beginning to evolve from a vertical integrated industry to a market-driven, global industry where the generation portion of the industry was being sold to independent market-based companies. The beginnings of acquisitions, restructuring and re-alignments of the transmission and distribution systems were heightened during this period. In addition, as this study was underway, a tumultuous restructuring in California caused some proponents of deregulation to question the changes.; The purpose of this study is to investigate price changes at the state level during the last 10 years (1990-2000). The conceptual framework is built on a study released in 1996. This study predicted lower prices as deregulation in the electric industry occurred and consumers had more choices in suppliers. In order to gain additional insight, the study is comprised of a quantitative analysis of price changes over time as well as a qualitative investigation of a certain geographic area.; As a result of the quantitative analysis performed, the study has failed to reject the null hypothesis that deregulated states exhibited no difference in price ratios than those states that remain regulated. This was tested at the level of political influence (states with elected versus appointed) commissions.; In fact, whether the population is segmented nationally, regionally, politically or by level of deregulation, price ratios have decreased from 1985-1996. National price ratios have been declining since the mid-1980s. A flattening of the trend for the last four years (1997-2000) may be due to the current retrenching as a result of the California deregulation experience.; The qualitative section seeks to understand what influences electric prices have on regional economic development efforts. The interview results have determined that lower electric prices help to contribute to successful economic development activities, but they are not the deciding factor. Cooperative action at all levels of government, industry and utilities are found to be the most important input to creation of positive economic development actions and strong economic regions.; The interviewees expressed their opinion that alternative technological generation options would provide additional methods of meeting future energy needs.