The utility industry is in financial transition, both in the United States and abroad. In such times, it is often difficult to pinpoint the catalyst that carries an organization through a period of change. Successful analysis of efficient market models in the past can offer an excellent indication of how "restructuring" will affect utility industries in the United States and the world. Current efforts have come about because of the growing, and projected, need for power. Technological advancements in information systems and automation, as well as migrating and growing populations in developed countries, have emerged as the largest factors driving this need.
History teaches us that these periodic metamorphoses are cyclical. Paul Kennedy's 1989 book, The Rise and Fall of the Great Powers, analyzes the repetitive nature of the world's economies. Kennedy attributes the development of economies of scale to the great wars that nurtured production, which, in turn, advanced technology. In the current era of "peace," this cycle continues. Although today's battles are more economic than military, the victims remain the same: people. In the case of utilities, these people could be investors, customers with limited service options, or employees. Projecting the likely financial effect of change is probably the most important element in surviving it.