Although many people don't know much about the electricity industry beyond their monthly bills, it plays an important role in their lives and is a crucial component of the American economy. This industry is entering a period of increasing competition that could result in a major restructuring, affecting consumers at every level of the economy. A team of economic analysts at Resources for the Future has produced this concise, balanced, and readable primer to explain how the American electricity industry will likely change over the next decade. Technological, economic, and political developments are shaping a system very different from the one we have known. A Shock to the System provides the background necessary to understand and evaluate the many proposals for introducing competition to electricity markets. The authors introduce the concepts, crucial elements, and terminology used in discussions about restructuring. They identify the significant issues in the competition debate, explaining the consequences that the major proposals would have on efficiency, market structure, regulation, and the environment. This volume is an instructive guide to the next ten yearswhere changes will occur, what forms they are likely to take, and what their long-term ramifications may be. Its review of the central topics concerning restructuring identifies the questions that policy makers must answer if the benefits of competition are to be achieved with minimal disruption. The result is a book of great importance to those engaged in the study or practice of business, economics, and public policy in a volatile era. ''A superb analysis of the electricity industry and its coming transformation. A Shock to the System deserves wide readership.'' James Carroll, Georgetown University and Florida International University
