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To: Ilaine who wrote (102569)	5/16/2001 10:44:00 AM
From: flatsville	Read Replies (1) \| Respond to of 436258

>>>You assume that electric utility companies actually consist of two separate companies, one that generates electricity, one that transmits it. Why is that?<<< Utililites have units--generation, trading, brokerage etc...always have. The fed reg establishes a wall between the generation and transmission units on the supply end (which may have even existed before depending on how the ute was structured.) >>>Unbundling the two may be necessary...<<< Yes, the separation of enitites and unbundling of services are necessary. >>>Unbundling the two may be necessary to comply with federal and state law but I don't see any other reason for it, that is, no reason which would be dictated by market forces.<<< Theoretically the separation of units and subs and unbundling of services is to level the playing field and establish a common starting line for the liquid, competitive market dereg is "suppose/promises" to establish. I suspected you wouldn't see any "free market" force reason for it given the simplistic model guiding you which has no bearing on the real world reality of the electric market.