Power shortages and blackouts in late 2000 and early 2001, drew international attention to the regime of deregulation of electricity taken four years ago in California. This case is the final score of the nature of that deregulation, as well as the process by which it was developed and options are considered as it was manufactured. It focuses on the selection of California made as to put in place a system that would divide the power generation, transmission and distribution of retail systems, which historically have been integrated. The case describes how California regulators and elected officials sought to maintain operational efficiency and coordination associated with the current vertically and horizontally integrated, allowing the competitive market to flourish. Because it does not comes to describing exactly what it seemed to go wrong when the power crisis has hit California, the case requires a discussion and analysis of unintended consequences of deregulation mode is selected, including the decision to set retail prices during the transition period. It contains a detailed description of the key role of the new institute, "independent system operator" and the role of California chose to play in helping to power operations. HKS Case Number 1632.0 "Hide
Henry Lee on 13 pages. Publication Date: 01 Oct 2001. Prod. #: HKS492-PDF-ENG