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A Profile of the Electric Power Industry by Charles E. Clark

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Chapter 3

Electric Industry Organization

Two dimensions define the industrial organization of the industry. The first dimension is corporate organization. Some companies are investor owned utilities (IOUs). These are profit making entities that are regulated, usually by state price setting bodies. IPPs are also profit making but sell their product—generation—in competitive markets. Finally, public power organizations are owned either by customers or by bodies that represent the customers. These public power utilities must recover their cost but they do not generally make a profit. The second dimension defines the parts of the value chain that the companies pursue. Companies can participate in generation, transmission, system operation, distribution, ...

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