Electric Utility Trends-and How Customers Will Benefit
Abstract
What's ahead for the electric industry? What sort of changes are
already taking place? How will energy users profit from the se changes?
And how will changes in electric utility structures affect the natural gas
industr y?
Here are some observations and predictions: There is an accelerat-
ing trend towards the vertical disaggregation of utility functions into
organizationally , and /or legally separate GENCOs, TRANSCOs ,
DISCOs and ESCOs. As in Gestalt therapy, once the whole is broken
down and traditional relationships sundered, we believe the pieces will
be reaggregated into healthier and larger organizational entities: utility
consolidations will continue; GENCOs will grow through utility GENCO
and IPP mergers; broader regional TRANSCOs will emerge ; larger
DISCOs will be created through horizontal mergers; and LDCs will
merge with DISCOs to form EDCOs (energy distribution companies)
who will distribute both natural gas and electricity.