Electric utilities in the future: Competition is certain, the impact is not

This article reviews the results of a survey conducted by R.J. Rudden Associates and Fitch Investors Service that polled state commissions on their practices, policies, attitudes, and opinions regarding electric utility competition. The Rudden/Fitch Survey addressed six different forms of competition that will most greatly influence electric markets - wholesale wheeling, retail wheeling, self-serving wheeling, self-generation, fuel substitution, and municipalization. Dramatic changes are affecting the US electric utility industry as legislative actions and regulatory policies increasingly promote competition. Although unprecedented in the electric power industry, these changes are not so unusual when compared to the extensive deregulation that has already occurred in the railroad, trucking, airline, and telecommunications industries. While the electric utility industry is not poised for immediate, broad-based deregulation, selective deregulation and accelerating competition will have significant implications for all industry stakeholders.