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Fortnightly Magazine - July 1 1995

to realize that retail competition, per se, may not be socially desirable. Only when combined with reforms in pricing, obligation to serve, planning, and other regulatory rules will retail competition enhance the industry's economic performance.

We agree that retail competition in an otherwise unchanged regulatory world can produce adverse results. But such a world would likely be unsustainable, since market pressures would engender the necessary procompetitive reforms in regulatory rules.

Kenneth W. Costello and Robert E. Burns

The National Regulatory Research Institute

Youssef Hegazy

Energy Management Associates/EDS

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