chapter  2
23 Pages

A brief history and theory of electric utility regulation in the United States

The electricity industry is the last remaining industry to be regulated fully as a public utility. This regulation has four elements: control of entry, price fixing, prescription of quality and conditions of service, and the imposition of an obligation to serve (Kahn 1988, vol. I, p. 3). The regulated firm has typically been a vertically-integrated, private, investor-owned utility.