Alternating Currents

Many US states, as well as many countries, are opening their electric power markets to competition. Others, in response to the crisis in California, have ruled out competition. This book provides an overview of the major issues facing industry regulators, legislators and others as they consider whether, when, and how to open electricity markets. The authors begin with background on the electric power industry, including the technology for producing and delivering power, the history of regulatory policy and an analysis of recent experiences with restructuring. They then provide insights into the policy debates and economic issues, including industry structure, future regulation, system integrity and reliability, the mitigation of market power and environmental protection. The book describes the recent events leading to the demise of retail competition in California in order to extract lessons for future attempts at deregulation. It offers perspectives on what makes electricity a unique resource and what makes the potential conflict between competition and reliability the most pressing of the long-term concerns for the electricity industry.