Electric utility restructuring in North America

Abstract

The electric utility industry in North America is undergoing a transformation unlike anything it has experienced in its history. Disassembly of the traditional vertically integrated utility is taking form in response to pressures to privatize, customer choice demands, competition in the marketplace, improved quality of service, and unfettered access to the transmission network. How will restructuring affect the reliability and quality of our electric power service? Today's world offers the electric utility industry a difficult but exciting challenge to organize itself so that utilities can compete in an open market for customer allegiance, while at the same time preserving a reputation for delivering a reliable, high quality service. Obviously, if reliability and quality standards are not met, the customer base will erode and perhaps disappear, which is an untenable situation. Similarly, if the utilities' commercial interests in the new marketplace are not maximized, company earnings can be placed in jeopardy. However, we have not embarked on this restructuring of the industry to put utilities out of business. We must find the middle ground that ensures we deliver a quality service over a secure transmission network at the best possible price for customers and a fair return to shareholders.