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In the past electricity pricing was controlled by regulation. The roots of modern day regulation can be traced all the way back to the late 1800's and found in the form of antitrust. By the beginning of the 20th century, the U.S. government had formed many regulatory commissions. The main goal of these regulatory commissions was to create a reasonable rate structure that would be appealing to both producers and consumers. While this system has worked for many years, it eventually came under heavy criticism. Many people wanted open competition among electric power producers. Although this was once believed to be an impossible proposal many states have accomplish it. Massachusetts is just one state where legislation applied to create competition among electric power producers is not only favored by the people of the state, but has also provided significant rate reductions as well.



The term regulation refers to government restrictions on firms' decisions over price, quantity,......

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Approximate Word Count: 2127
Approximate Pages: 9 (250 words per double-spaced page)

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