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Marketing Reordering of the Electric Utility Industry
Abstract
ELCON is a group of large industrial consumers
of electricity with facilities in most of the 50
states and many foreign countries. Our members
produce a wide range of products including steel,
aluminum, chemicals, industrial gases, glass, motor
vehicles, textiles and food.
ELCON members consume approximately ten percent
of all electricity sold to industrial customers and
nearly five percent of all electricity consumed in
the United States. We require an adequate and reliable
supply of electricity at reasonable prices,
so as you can imagine, we have a continuing interest
in all aspects of the production, pricing, and
delivery of electricity.
ELCON member companies believe strongly that the
electric utility industry is undergoing a market
reordering that is being shaped by technological,
institutional and legal forces. We see technical
developments that now make small-scale generation
economically attractive, if not downright desirable.
Key regulatory and consumer institutions
are taking fresh, new looks at issues such as
wheeling and access to the grid that used to be
considered sacred and untouchable. Some states
are passing laws and implementing regulations that
will require new thinking and new operating procedures
on the part of utilities and consumers.
I see these developments as logical reactions
to changes in market forces. Change will take
place. The relevant questions are: How will regulators
and policy makers be influenced by market
forces in the future? And: Will utilities, consumers and regulators attempt to benefit from
market pressures or, alternatively, try to oppose
what I believe is inevitable evolution to a more
market-oriented electric industry?
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Citation
Anderson, J. A. (1986). Marketing Reordering of the Electric Utility Industry. Energy Systems Laboratory (http://esl.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /92952.