The preceding chapters have presented the history of the development of the electric power industry and the regulatory system governing it-both based on the economic concept of natural monopoly. But clearly, we are at the end of natural monopoly as the guiding paradigm of the electric power industry.
What will this mean for the future?
Two views are expressed in the following chapters. The first, by Andrew Morriss, a legal scholar, takes a pessimistic approach in a mostly polemical argument about why the law-making and law-enforcing processes will produce nothing like deregulation and competition in the electric power industry.
The second, by Peter Grossman, an economist, looks at the widely publicized events of California from the summer of 2000 to the spring of 2001, and then draws some conclusions about the possible future of the electric power industry. Though California set back efforts at deregulation, Grossman is less pessimistic about the future. There has been an end to natural monopoly in the electric power industry, and a competitive model seems most likely to replace it. The regulatory system, Grossman surmises, likely will, no doubt slowly, take account of that change in paradigm.
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Publication information: Book title: The End of a Natural Monopoly: Deregulation and Competition in the Electric Power Industry. Contributors: Peter Z. Grossman - Editor, Daniel H. Cole - Editor. Publisher: JAI Press. Place of publication: Boston. Publication year: 2003. Page number: 191.
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