Examination of an optimizing model which incorporates new technologies and discusses a possible new electric utility industry structure suggested by the model. First, a sketch of the background to the deregulation debate as it pertains to the power industry is provided. Second, a welfare maximizing model incorporating the new metering technology is presented. Third, an alternative institutional structure that is suggested by this economic modeling approach is sketched. Finally, some problems that would arise during a transition to this new institutional structure are discussed.
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