The process of restructuring the American electric utility system has not been kind to its advocates. Begun about fifteen years ago, the opening of markets and increased competition in the formerly tranquil, monopolistic system had been expected to yield innovative services and lower costs, just as deregulation of other industries had done earlier. Instead, the restructuring process resulted in poorly designed markets in California and elsewhere, scandals involving independent generating and marketing companies, the bankruptcy of a major utility firm, and—worst of all in the minds of many—higher prices for electricity. The traditional holders of political and economic control—power company managers—have lost significant clout as the century-old “utility consensus” continues to dissolve. Much of the flux that characterized the utility system in the late 1990s persists today.
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