Electric Utility Restructuring

With some notable exceptions, the electric power industry historically has been composed primarily of investor-owned utilities. These utilities have been predominantly vertically integrated monopolies (combining electricity generation, transmission, and distribution), whose prices have been regulated by State and Federal government agencies. Restructuring the industry entails the introduction of competition into at least the generation phase of electricity production, with a corresponding decrease in regulatory control. Restructuring may also modify or eliminate other traditional aspects of investor-owned utilities, including their exclusive franchise to serve a given geographical area, assured rates of return, and vertical integration of the production process.