The Changing Scene: An Overview of Recent Developments in the Electric Regulatory Arena

This paper explores current electric industry regulatory policies and institutional changes that will determine the industry's destiny. Part II of this paper provides an overview of structural changes in the electric industry including technological advancements and projected demand. Part III provides a recent history of the changing legal framework in electricity regulation, including an overview of PURPA and the Energy Policy Act. Part IV discusses the historic issuance of Order Nos. 888 and 889 and the beginning of true competition in the electric industry. Part V addresses the impact of competition on pricing policy and suggests that some regulatory oversight may be necessary in the transition to competition. Part VI addresses the organizational function of power pools and their growing importance as we enter an era of competition. Part VII addresses the Commission's merger policy which increasingly is responding to the “merger mania” of a competitive marketplace. Part VIII is a discussion of state initiatives in retail competition and focuses on the California experiment involving a power exchange and an independent operator system.