Prudential Predicts Revenue Losses for All Utilities
In a recent report, A Free Market for Power Would Mean Revenue Losses for All Utilities (em But Some Would Suffer More Than Others, Prudential Securities simulated a competitive electricity market (em assuming that all industrial and commercial customers would be able to choose their electric supplier by 1998 (em to find out how a completely free market for power would affect utility revenues, earnings, and dividends.
The competitive risk study statistically measured marginal costs, then created a simulated spot-market electricity price for each of the 11 geographical reg