A Shock to the System: Restructuring America's Electricity Industry

Recent decades have seen revolutions in communications, finance, and transportation. In a similar way, technological, economic, and political developments are reshaping the US electricity industry. This concise, balanced, and readable primer, produced by a team of economic analysts at Resources for the Future, introduces the concepts, crucial elements, and terminology used in discussions about electricity restructuring. A Shock to the System provides the background necessary to understand the increasing role of competition in electricity markets. The authors present the history of public policy regarding electricity, identify the significant proposals for implementing competition, and examine their potential consequences for utility regulation, industry structure, cost recovery, and the environment. This volume is an instructive guide to the decisions that electricity providers, customers, and policymakers will face, what forms the decisions are likely to take, and what the long-term ramifications may be.