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The Electric and Gas Industries are Converging: What Does it Mean?

Fortnightly Magazine - April 1 1995

through lateral integration of the merchant, logistics, and network businesses, and vertical integration of the energy production function?

s Survival. What irreducible natural monopolies will endure in the energy delivery system from wellhead (or mine mouth) to busbar to final meter? Who will regulate these residual monopolies?

s Institutions. Will the force of technological change and the rise of intellectual capital sweep aside regulatory, organizational, and industry structures?

s Grassroots. Will consumers, especially large energy users, be content with gradual change, or will information about choices empower them to compel rapid and substantial change in the energy delivery and regulatory system?

The future cannot be predicted. No single path is ordained or inevitable. The future can, however, be invented (em by those who who would shape the world in their own image through will, money, and imagination. t

Vinod K. Dar is chairman of both Jefferson Gas Systems, Inc., a private co-investment company, and its electric services subsidiary, Jefferson Electric Inc. He also serves as senior advisor to RCG/Hagler Bailly, Inc., an international energy and environmental consulting firm.


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