Abstract :
Restructuring dockets continue to be dominated by a narrow and economically obsolete view of vertical integration. We now know that it can be efficient, particularly in an industry with the flow dependencies of electricity. Integration is a matter of degree rather than a binary choice between 0 and 100 percent. The economically warranted degree needs to be investigated rather than determined by politics. Both markets and integration have their virtues, and policymakers must account for the costs and benefits of both.
