Introduction

Abstract

The electric power industries in the United States and most other countries have long been structured in accordance with a simple paradigm. In the belief that electric power is a natural monopoly where a single company can provide service most efficiently, this paradigm involves large franchised utilities with exclusive service territories and which are integrated into generation, transmission, and distribution. Concerns over price and cost distortions from monopoly power are addressed by regulation if the utilities are privately owned, or by outright public ownership.