This paper analyzes how a new field, independent (or non-utility) power production, was created by a federal mandate that electric utilities purchase power from private generating sources and how the field was populated. Results show that key rules that state regulatory bodies adopted or rejected regulating exchange between independent power producers and utilities were influential predictors of organizational foundings. Results also show that collective action by independent power producers boosted foundings. Finally, if the preexisting relationship between utilities and regulators was one of accommodation, foundings were suppressed. The paper examines these results in view of economic and sociological perspectives on public policies, spotlighting the vital role of institutions in early population dynamics.
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