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A Critical Assessment of Electricity and Natural Gas Deregulation

Abstract Economic deregulation of electric and gas utilities has failed to achieve its proposed objectives of lowering price, promoting greater consumer choice, constraining market power, and improving infrastructure performance. Concentration has grown, deregulated price increases exceed prices where regulation was maintained, and supposedly free markets do not assure control of market power or cost effectiveness in achieving environmental protection. An agenda for re-regulation is proposed. These reforms would continue the work of Institutional economists in the field of public utility economics.