State commission regulation of self-dealing power transactions

摘要

Self-dealing by electric utilities has always been a phenomenon with potential for harm and good. Vertical integration, a common form of the self-dealing arrangement, was long thought to have the chance for scale and scope economies which, if reflected in prices to customers, could be beneficial. Where self-dealing is of the abusive variety characterized by artificially high prices, accounting and intracorporate mischief, anticompetitive behavior through deterring entry, and preferential supply acquisition, the ratepaying public and the industry structure are hurt. This study sets out the potential problems with self-dealing by electric utilities in the new environment of increase reliance on markets and suggests how regulators might best respond.