Electricity Restructuring

Restructuring of the electricity industry has been approached with a top-down approach that has failed to result in benefits to consumers. Economic theory states guidance on conditions that are essential for well-functioning markets to exist in which the consumer benefits and the firms utilize innovation to control costs. There is currently a debate surrounding the importance of each 'condition' as well as the resulting harm when conditions are unmet. It has been learned that without the essential pieces in place that restructuring of the electricity industry may result in results that are highly negative in nature. These essential pieces include new transmission capacity, real-timing pricing, the absence of excessive market power in generation, fair competition between utility incumbents and other market players, effective regulatory oversight, a level playing field between private entities on the one hand and electric cooperatives and public power suppliers on the other, well0infomed small...
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