Deregulation of the electric utility industry is a growing worldwide trend, starting in the UK, spreading to the US, and in parts of Asia and Europe.
This has spawned the creation of a new breed of electricity generators, Independent Power Producers (IPPs) and Merchant Plant Developers. The former receive a fixed rate for electricity, the latter receive a rate determined by spot market prices.
Unlike traditional utilities, the major players in this field are growing at solid double digit rates, rivaling those of leading technology companies, but often with less risk.
Among the pure plays are AES, CPN and a new issue, NRG. Many traditional utilities are creating de-regulated subsidiaries to pursue this field. |
