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Electric Utility Deregulation Sparks Controversy

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In recent years, major industries in the United States have been deregulated--for example, telecommunications, airlines, and banking--and now the winds of change are blowing through the electric utility industry. But the experts do not agree on how much change is good for the country and how fast it should occur. Thomas R. Kuhn of the Edison Electric Institute, Pradeep ("Pete") Mehra of the Ford Motor Co., Robert L. Ball of Alcan Aluminum Corp., Richard C. Green, Jr. of UtiliCorp United, Donald E. Felsinger of San Diego Gas & Electric Co., David L. O'Connor of the Massachusetts Division of Energy Resources, Michael Shames of the Utility Consumers' Action Network, and John R. Hodowal of IPALCO Enterprises express their differing viewpoints in HBR's Perspectives, covering such topics as stranded costs, aggregation of small consumers, vertical deintegration, performance-based rate making, and retail wheeling of power.
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