The End of a Natural Monopoly: Deregulation and Competition in the Electric Power Industry

By Peter Z. Grossman; Daniel H. Cole | Go to book overview

6.

WHITHER NATURAL MONOPOLY? THE CASE OF ELECTRICITY *

Joseph P. Tomain


INTRODUCTION

The electric industry in the U.S. presents an excellent case study of government regulation. Like other network industries such as natural gas, telephone, and railroad, electricity regulation was based on the central political-economic idea that certain industries had natural monopoly characteristics and that the goods they provided were in the public interest (Tomain, 2000). Further, like all government regulation, the regulation of the electricity industry has embedded within it a deep tension between a preference for government and a preference for markets as the favored tool for social ordering. This tension is present today as the industry experiences a significant restructuring.

As a fundamental matter of political economy, markets and the property exchanged and valued in them exist only because of government protection. In short, markets do not exist without government. Still, the degree of protection

* Author's note: Chapter 6 was written before we understood much about the California electricity crisis of 2000. The chapter was also written before the events of 9/11 and before the Enron debacle. In another article, the author takes the position that California, Enron, and 9/11 have no impact on the wisdom of electricity deregulation as an energy policy. The revelations of market manipulation in the spring of 2002 by Dynergy, Reliant, Enron, and other actors, however, raise serious questions about the difficulty of designing a deregulatory policy for the electricity industry. At the same time, the widespread charges of market manipulation indicate the persistence of natural monopoly problems in transmission.

The End of a Natural Monopoly: Deregulation and Competition in the Electric Power Industry, Volume 7, pages 111-139.
Copyright © 2003 by Elsevier Science Ltd.
All rights of reproduction in any form reserved.
ISBN: 0-7623-0995-4

-111-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
The End of a Natural Monopoly: Deregulation and Competition in the Electric Power Industry
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
/ 248

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Author Advanced search

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.