Abstract
Effective competition among alternate suppliers, alternate fuels and emerging technologies will provide a new challenge to electric utilities in the next decade and beyond. The erosion of the traditional natural monopoly market structure should be viewed as a healthy consequence causing more appropriate pricing of utility service, a renewed emphasis on efficient operation and a broader base of utility offerings.
The benefits of competition will accrue to all sectors of customers. The benefits which might be expected would likely vary by region and by class of customer. In assessing the benefits of competition it is important to recognize the need for flexible regulation and for both traditional and non-traditional responses to competition. As a result of those responses, all rate payers will benefit from efficient, safe and reliable electric service provided to customers at the lowest feasible cost.
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