The Effects of Competition on Transmission and Distribution Costs in the Municipal Electric Industry

Abstract

Dissatisfaction with rising electric rates, together with the success of deregulation in the transportation, communications, and financial sectors, have led to a number of recent proposals for the total or partial deregulation of the electric power industry.1 Many of these proposals envision an enhanced role for competition in the generation of electricity, with continued regulation or public ownership for the transmission and distribution of electric