Blog Archives: January 2013

January 2013

—  SEE COMMENT FROM READER POSTED BELOW BLOG 

The precise definition of “unbundling” is often unclear. Some statutes identify it as “separately identifying and charging” for different services. Other textbooks define it as “making services separately available”. Understanding the concept is crucial to the process of figuring out how to de-integrate a vertically integrated utility:  “Unbundling” competitive functions from noncompetitive functions.

January 2013

Below is one of the comments I received on my January 2012 essay:

January 2013

What word best describes our utility industries' bumpy rides from monopoly markets to competitive markets?  "Evolution" implies natural, gradual change, stimulated by random events.  "Transition" is almost content-free, omitting any sense of who is doing what.   "Conversion" implies active decisions, decisions necessary to overcome resistance and inertia, decisions by government to change legal rights and obligations; by utilities to change asset ownership, pricing options and product mix; by non-utilities to change competitive strate

January 2013

A monopoly market structure does not, on its own, align compensation with performance.  How well does the regulatory process address this challenge?