ABSTRACT
This chapter examines representative experiences in deregulation and restructuring, beginning with the transformation of the UK electricity industry from a government-owned to a privatized system. It provides a economic history of the move to deregulate and restructure the electricity industry. The chapter introduces reasons for restructuring and also examines the UK and California approaches. In the penultimate section, the chapter examines the ongoing PJM wholesale market in the northeastern US and restructuring in Texas under the auspices of the Electric Reliability Council of Texas (ERCOT). Legislation introduced in 2002 called for deregulation and restructuring. Texas leads the US in allowing consumers to choose their retail energy provider. The world is anticipating a dynamic future for the electricity industry, as states within the US, as well as countries throughout the world, compare the merits of regulation and restructuring. The utility of the future will confront challenges from third-party generators, calls for green power and energy efficiency, and be implementing new technology.
