Effects of the Liberalization of the Electricity Market

Prepared by Global Economic Analysts Ltd. February

For Business Discount Plan, Inc. 2000

Regulated industries in all parts of the world are being deregulated, privatized, and otherwise liberalized in the contemporary period. An especially active area of such liberalization is the electric power industry. This report is designed to provide the individual or organization considering the investment potentials in liberalized utility markets with the information needed to make informed assessments of investment potentials in the electric power industry in the State of California, USA which are emerging in the wake of deregulation that was implemented in 1998.

To provide a logical flow of information to support an integrated assessment process by an investor, this report is structured in major sections, each of which provides information relevant to the potential investment opportunities in a sequence that leads from a basic familiarity with the issue of the liberalization of regulated industries to an in-depth review of the electric power market in California. To facilitate an the review and analysis of the information provided in this report, major sections and their sub-sections are identified both textually and numerically in the Report Contents page which follows this In

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communications companies were provided with protected markets), as was the possibility of financial loss. The regulated rate structure of the telecommunications industry in the United States acted as a subsidy mechanism for the industry. If there existed the possibility of financial loss, rates were increased by the governmental regulatory body to assure a predetermined profit level. The deregulation of the telecommunications industry in the United States, thus, may, in one context, be viewed as the privatization of that industry in the United States, because deregulation transformed telecommunications into a competitive industry, wherein government is a minimal player. In most other countries, telecommunications services were provided by a governmental organization. When the privatization of telecommunications services occurred in some of these countries, thus, the action more clearly represented the privatization of a nationalized industry than was true of the deregulation of telecommunications services in the United States. Telecommunications privatization was accomplished in a variety of forms in those countries where it occurred. The stated fundamental objective of telecommunications deregulation in the United Sta
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Approximate Word count = 9420
Approximate Pages = 38 (250 words per page)

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