The Social Organization of Electric Power Supply in Modern Societies

Abstract

For many years Philip Sporn has been a leader in electric industry. Not only has he built his company into largest investor-owned electric company in world, but for several decades he also spearheaded practically every major technical development in industry. In this book he examines basic question of versus private power. The increasing acceptance of social aspects of electric supply raises doubts about likelihood of maintaining in future present division between private and power. He notes social, technical, and economic difficulties that confront both sectors and indicates several possible courses for future.The world's first commercial electric facility--the Pearl Street Station in New York City--began service in 1882 with a modest load of approximately 400 lamps, each taking about 83 watts and constituting and electric demand of 33 kilowatts. Today electric industry faces an unprecedented demand for electric energy and an undiminished future growth. The book begins by tracing development of U.S. to its present strong minority position (23%) over a period of half a century, and discusses organization of electric supply in England, France, Mexico, Russia, Italy, and Sweden. The technical competence and performance of and private are then examined, and performance of systems under different social organizations set up to protect national interest is analyzed. The book concludes by indicating specific problems that will be faced in future by utilities industry.One of book's principal concerns is to cut through myths that have long surrounded power--the mistaken linking of public power with the interest, and serious limitations that are placed on initiative and imagination in this sector. Mr. Sporn's analysis of capital and tax costs is particularly explosive and suggests a more rational means of measuring true costs than has been available up to now.While book makes a strong case for continuation of private ownership and management of supply facilities, it also indicates past and present failings of private power. What utility industry sorely needs, Mr. Sporn concludes, is better, more creative and responsive management: Too many of managers of our utility enterprise have been raised by and large in a background of law, or accounting, or economics. Technical imagination is not part of their training. Social responsibility and ethics are more or less foreign concepts--at least they would be treated as improper for integration into management decision process. While no single form of social organization can magically eliminate all problems of electric industry, Mr. Sporn points hopefully to Swedish system which has successfully integrated both private and power, keeping alive ethical and real competition between sectors.