Appendix D Influences on Decision-making in the Electric Utility Industry

• Decision-making in the electric utility industry is influenced principally by:

  • Factors established by or under the control of the industry:

    • A perceived continuing increase in demand for electricity, with this perception being shared by companies of the electric utility industry, other energy industries and the government—and confirmed by demands of industrial, commercial and residential customers. New uncertainty as to the extent of the growth in demand.

    • The perception that the use of electricity relative to other energy forms such as gas and oil will and should for economic and other reasons increase significantly, with electricity eventually providing the majority of the energy consumed by industrial, commercial and residential consumers and significantly more of that required for transportation and other markets.

    • Ability of the internally non-competitive, investor-owned industry to exchange policy, management, planning, research, development, design, construction and operations information.

    • Ability of the private industry to organize and utilize in a substantive and broad manner industry-wide associations, such as EEI, which exchange technical, operating, marketing and other information; carry out industry-wide programs; and coordinate and carry forth industry views on a broad range of matters involving government and public interactions.

    • Ability of the public sector to organize and utilize in a substantive