ABSTRACT
Deregulation of the electricity industry has progressed on a rather ununified state-by-state basis. To be able to understand how changes occur in electric/natural gas utilities, a knowledge of what they are and how they are regulated must be available. Interstate regulation in electricity and natural gas is the responsibility of the Federal Energy Regulatory Commission. One factor in intrastate regulation is the number of regulatory agencies that allow the utilities they regulate to offer truly cost-of-service rate schedules. Periodically, all public utility commissions that regulate for-profit utilities are required to issue status reports. Generally, when municipalities undertake the providing and regulation of utilities, they are purchasing the commodities at wholesale rates from a for-profit or federally regulated utility, and then retailing these utilities to the public. Municipal utilities are generally presided over by a utility commission or board of appointed or elected members.
