Rethinking Electricity Restructuring

“The poor track record of restructuring stems from systemic problems inherent in the reforms themselves. We recommend total abandonment of restructuring and a more thoroughgoing embrace of markets than contemplated in current restructuring initiatives. But we recognize that such reforms are politically difficult to achieve. A second-best alternative would be for those states that have already embraced restructuring to return to an updated version of the old, vertically integrated, regulated status quo. It’s likely that such an arrangement would not be that different from the arrangements that would have developed under laissez faire.”

http://www.cato.org/pub_display.php?pub_id=2609
http://www.cato.org/pubs/pas/pa530.pdf