Markets and controls are frequently portrayed as being polar opposites, incompatible alternative paradigms, or even competing philosophies for organizing the activities of large complex systems. In the electricity industry in the US prior to the 1990s, the dominant organizational structure was the vertically-integrated utility, characterized by a well-defined geographic and electrical service territory and the ownership or control of most generating facilities, a transmission network, local distribution systems and a monopoly over retail electric service for most if not all of the end-users in the territory. A vertically-integrated utility, many of which still exist today, operates mostly on controls with very little scope for markets or market transactions.
Revised: August 4, 2020 |
Published: June 30, 2017