Perspectives on electric utility change

This paper offers four general observations and outlines important topics in each issue area for later discussion. The observations include: any changes in regulation should provide net benefits; ‘obligation to serve’ may be inconsistent with free entry and free exit; regulatory objectives should be flexible; and regulators should better match rewards with risks taken. The remainder of the paper also summarizes important topics in incentives regulation, environmental regulation, innovative pricing, demand side management, transmission access, and industry structure prior to the panel discussion.