10 Steps to deregulation

The author presents a plan of deregulation that has attracted the attention of the electric utility industry, both pro and con. The program has a logical progression that can be halted and restarted at any point as circumstances warrant. An abrupt and disruptive change in public policy and industry structure is not necessary. Although the 10 steps may overlap to some extent, each can be separately identified and analyzed. They are: setting up incentive rates; centralized dispatching; power brokerage and auction markets; realignment of Federal Energy Regulatory Commission; interstate compacts; wheeling of power; unbundling of rates; devolution of generating facilities; contracting and off-system scales; and spot and future markets.