Competition in electricity is part of a general trend toward deregulation (em from airlines to stock markets (em that characterized economic evolution in much of the western world during the 1980s. The move to liberalize electricity in some countries has been spurred on by the disenchantment of politicians and large customers with the traditional monopolistic arrangements. Monopoly not only prevented customer choice, but was increasingly seen as inefficient and paternalistic.

The utility industry is in financial transition, both in the United States and abroad. In such times, it is often difficult to pinpoint the catalyst that carries an organization through a period of change. Successful analysis of efficient market models in the past can offer an excellent indication of how "restructuring" will affect utility industries in the United States and the world. Current efforts have come about because of the growing, and projected, need for power.

It was far from common just two years ago to identify an electric utility with a senior executive responsible for proactive marketing activities. Today, such people are relatively easy to find. Often they report directly to the CEO.

The waves of utility downsizings and corporate reorganizations have brought the realization that electricity will need to be sold, serviced, and strategically marketed to customers large and small.

I am under siege. To be more precise, my company and American corporations in general are under siege. In popular media today, corporations are consistently treated as suspect at best (em and demonized at worst. If you switch off your critical faculties when you watch television or go to the movies, you're probably convinced that corporate America is out to destroy this country. In 1964, while campaigning for Barry Goldwater, Ronald Reagan framed the issue perfectly.

The Federal Energy Regulatory Commission (FERC) has denied a request by Kentucky Utilities Co. (KU) to charge market-based rates for bulk-power sales. In a related action, the FERC called for a public hearing on KU's accompanying transmission tariff, which would establish point-to-point rather than network service.

The U.S. Court of Appeals for the District of Columbia Circuit has vacated the Clean Air Act (CAA) compliance rules for reducing NOx emissions from coal-burning electric facilities (Alabama Power Co. v. EPA, No. 94-1170, 94-1329, Nov. 29, 1994). The ruling suspends any obligation to comply with the NOx standards pending further rulemaking by the Environmental Protection Agency (EPA).

The Federal Energy Regulatory Commission (FERC) has clarified the terms and conditions for default contracts designed for use on an interim basis when disputes arise over the sale or spinoff of pipeline-affiliated gas gathering systems.

The Federal Energy Regulatory Commission (FERC) approved a final order requiring Texas Utilities Electric Co. (TU) and its affiliate, Southwestern Electric Service Co., to provide network transmission service to Tex-La Electric Cooperative of Texas Inc. (Docket No. ER94-1385-000). Network service allows multiple points of receipt and delivery at a single system rate. Tex-La, a customer of Texas Utilities and a bulk-power supplier for seven distribution cooperatives in Texas, is seeking to buy power from third parties and transmit the power over TU's transmission system.

In a letter to Ronald Russell, chair of the Electricity Committee of the National Association of Regulatory Utility Commissioners, Larry Hobart, executive director of the American Public Power Association, argues that investor-owned utilities should not be allowed to keep rates confidential. Hobart says that rate secrecy destroys electric industry competition and that secret sales are a form of predatory pricing barred by antitrust law. He also claims that secrecy violates consumers' right to know if they are paying their fair share of utility costs.

The Department of Energy (DOE) has delayed until January 19 a hearing on its proposal to weigh external environmental costs when setting efficiency requirements for electric appliances, air conditioners, and other consumer goods. The hearing will consider selection and application of economic theory, the role of the regulatory process, scientific basis for proposed action, and economic impact of such a far-reaching shift on the economy. (em LB