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✦   LIBER   ✦

Industry to face six dimensions of deregulation policy

✍ Scribed by O'Connor, Philip R.


Book ID
102844169
Publisher
John Wiley and Sons
Year
2007
Weight
546 KB
Volume
14
Category
Article
ISSN
0743-5665

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✦ Synopsis


C tries, there is one feature of the electric industry transition that is different. For the first time in the deregulation of a network industry, customers are taking an active and aggressive role in the formulation of transition policy. This involvement, while laudable in every respect, presents genuine complexities that make the already complex task facing policy makers more difficult. At least at the outset, other network industry deregulation has largely been a product of the interaction of economic experts, industry incumbents, and a few aspiring entrants. Perhaps stimulated by experience with competition in other network industries, and by the controversial past of electricity, including the nuclear energy debate, customers have been taking a hand in encouraging state legislators and regulators to push the envelope of electric regulation. However, just as other interests will compete for the proverbial "fair advantage" in the political process, so too are various customer groups competing for advantage relative to incumbent utilities and against one another.

The most important result of this unique customer involvement is that, unlike the-other network industries, there is enormous pressure for policy makers to produce much more complete and forward-looking transition plans. Interested parties are proving to be unwilling to embark on a transition to retail electric competition on the basis of partial plans that leave many important details for later determination. There is enormous distrust among the players and recognition that anyone disadvantaged now


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