Cover: Structural Reform in Electric Power

Structural Reform in Electric Power

A Framework for Analysis

Published 1987

by Herman Quirmbach, Jan Paul Acton


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The electric utility industry is attracting attention as a candidate for deregulation. This report identifies the core economic functions that the electric supply industry must fulfill, whether it operates under its current regulatory structure or one that is substantially less regulated. Having identified these core functions, the authors suggest ways to evaluate short-run efficiency and long-run efficiency gains that may occur in both the current environment and under the alternative suggestions for deregulation. They do not attempt to provide detailed evaluations of the alternatives, but rather suggest a framework within which the alternatives can be judged. The report includes a brief review of four recent policy developments that provide some insight and confirmation for the conjectures the authors develop.

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