Time to deregulate electric generation

Arguments for utility deregulation cite the need to increase the role of non-utility firms and unregulated utility subsidiaries in power-generation matters and the need to rely more on competition than government control. Participants in a regulatory seminar suggested auctioning public utilities to independent operators who would sell their power at free market prices, even to the point of going out of the power-generation business and retaining only enough regulatory structure to prevent abuse. This would take advantage of the cost-effectiveness of some small-scale and renewable energy options, and would shift the risk to private industry. There was less enthusiasm for utility diversification as a way to cure the utility industry's economic problems. (DCK)