The Energy Affordability Challenge

Abstract

Electricity is essential to the economic and social well-being of modern societies. And while electricity is a necessity—in other words a public good—it is largely provided by private interests. As a result, local electric distribution utility operations and power generation are regulated by state and federal regulators and in some instances local governments. Distribution utilities in all 50 U.S. states deal with local, state, and federal oversight in some form. Each state has its own regulatory framework and policy directives to be met resulting in a patch work of varying degrees and forms of regulation—some more stringent than others.