ElectriC Utilities In 2007

Abstract

A c entury ago-in the year J.J . Thomson discover ed the electron-
electricity, gas and tracti on companies battled for markets, and corrupt
city councils demanded their fair share of the take . On e tycoon became
so d isgu sted with the confusion and dishonesty that he decid ed to bribe
the legisl atur e to se t up an hon est, state-run regulat or y agenc y th at
wo uld bring orde r to chaos.
But he wa s fo und ou t. The scan dal set back the cause of re gulat ion
unt il 1907, the year in whic h th e elect ric was hi ng m ach ine and the
va cuum cleane r were inve n ted. By then, electricity sales had sep tu p led
from 1897 levels, an d three states had es tablished ut ility regul ati on .
In the coming decade, 1997 to 2007, the ut ility business co uld un-
dergo similar dra matic change, but it w ill move towar d less re gulat ion
and more compe tition dur ing a period of slow gro wth . Manageme n t
wi ll have to wo rk h ard er to achiev e success, however, becau se mu ch of
the p rofits will ha ve to come not from a growing mark et but f rom the
pockets of compe titors .