Experience with electric industry deregulation in North America: a system operator´s perspective

The competitive electricity supply industry in North America is facing yet another round of sweeping changes intended to enhance business efficiency and operating reliability. The Federal Energy Regulatory Commission (FERC) of the United States through its Order 2000 has proposed structural changes. In parallel, the North American Electric Reliability Council (NERC) is reviewing and revising the basic model of operating reliability functions. Both sets of changes have profound impacts on the electric industry in North America. This paper provides an overview of the experience with electric power deregulation in North America from an operator´s perspective. It also speculates on where the industry is heading in the next several years. Discussions focus on the key issues that are viewed as impediments to an efficient and reliable market place, the underlying difference between business and operating objectives. commercial advantages of the traditional utilities and the need for independent operating authorities.