Excerpt from the Introduction:
The New England states were among the first in the nation to restructure wholesale and retail electricity markets beginning in the late 1990s. In large part, the action was prompted by the burden of having the highest electricity costs in the country, which created hardships for residential consumers and handicapped many businesses from competing on a “level playing field” with companies located outside the region.2 Restructuring required most electric utilities to: sell their generating plants, allow consumers to choose among electricity suppliers and procure electricity for those consumers not choosing an electricity supplier – while remaining regulated and responsible for local distribution service. Wholesale restructuring involved creating a fair and reliable market for competition in generating electricity while ensuring equal access to transmission grids. Once established, the wholesale market caused electricity to become a commodity with prices set not by regulators, but by market rules and the balance between supply and demand.