Objective. Estimate market impacts of "1+" dialing parity plus eliminating traditional LATA boundary.
Model. Measure shifts in market dominance between major competitors, by assuming...
transmission facilities and system control centers will find themselves in spun-off coordination companies (or isolated business units), where they may be joined by the transmission planning department as well. They will price their services (for asset use and labor), invoice customers, and maintain accounts like an independent business (em which is what they will be. They will display no special loyalty or connection to their former employer utility, just as today's Baby Bells enjoy no special relationship with AT&T.
Utilities will be left with their generating plants, plant operations, title to the transmission facilities (with limited property rights), distribution facilities and operations, and the business of wholesale and retail marketing. The disintegration of the vertically integrated electric utility will have begun. t
Steven A. Mitnick is a vice president of Hagler Bailly, based in Arlington, VA. He leads the firm's electric utility consulting practice in North America.
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