How politics, economics, and institutions shaped electric utility regulation in the United States: 1879–2009

The history of electric utility regulation at both the state and national level from the beginning of the industry through the aftermath of the California energy crisis of 2000–01 is presented. That history was partly determined by the economics of the industry – on the supply side by its cost structure, network characteristics, and lack of storability – on the demand side by its price inelasticity for all but the largest consumers, and partly by politics. These factors influenced the institutions that were created to regulate the industry, a process also complicated greatly by US federalism. The intensity of regulation waxed and waned in response to real or perceived problems in the industry.