1. David Loomis

2.  Prices “too high” reflecting monopoly power  Prices “too low” implying predatory pricing  Prices “too high” for some and “too low” for others – undue discrimination  Prices “unstable” making it difficult for producers and consumers to plan ahead

3.  Capital-intensive – high fixed costs  Viewed as necessities – essential to community  Non-storable – subject to fluctuating demand  Produced in favored locations – yielding rents  Direct connections with customers

4.  Simplicity and public acceptance  Freedom from controversy  Revenue sufficiency  Revenue stability  Stability of rates  Fairness is apportionment of total costs  Avoidance of undue rate discrimination  Encouragement of efficiency

5.  1970s: Regulation and Economics Diverge – OPEC  1980s and 1990s: Natural Gas Deregulation FERC 436 and 636  1990s to present: Electric Deregulation Comes of Age