New competitive opportunities may emerge in the deregulation of the electrical power industry

The electric power industry is undergoing epic changes that will rewrite its entire competitive structure. Enactment of the Energy Policy Act of 1992 by Congress has led to a wave of electric power deregulation that is spreading from state to state. The result is a type of price-based competition th...

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Bibliographic Details
Published in:Business forum (Los Angeles, Calif.) Calif.), 1998-07, Vol.23 (3/4), p.30
Main Author: Frankforter, Steven A
Format: Article
Language:English
Subjects:
Air pollution
Coal-fired power plants
Competition
Competitive advantage
Cost control
Cost recovery
Customers
Deregulation
Electric industries
Electric power
Electric rates
Electric utilities
Electricity
Electricity distribution
Energy policy
Federal legislation
Industrywide conditions
Profits
Retail wheeling
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Summary:The electric power industry is undergoing epic changes that will rewrite its entire competitive structure. Enactment of the Energy Policy Act of 1992 by Congress has led to a wave of electric power deregulation that is spreading from state to state. The result is a type of price-based competition the industry terms "retail wheeling." Retail wheeling occurs when utilities open their transmission grids to competitors in a manner analogous to local telephone companies providing access to long-distance providers. In the future, competitive forces, not the prevailing system of cost-plus pricing controlled by state utility commissions, will determine the price of electricity.
ISSN:0733-2408