Description
Lambert (of Global Crossing Ltd.) reviews the recent history of energy market deregulation in the US, arguing that failure to understand the effect of the removal of price and entry constraints on network industries such as natural gas and electricity "is an invitation to manipulation, rent seeking, and, ultimately, unregulated monopoly." In addition to describing deregulation failures such as Enron's manipulation of the gas supply market and the implosion of the California electricity market, he also explores post-deregulation markets that he believes work, such as the Pennsylvania-New Jersey-Maryland Interconnection LLC, and makes the case for a mixed regulation-competition model. Annotation ©2006 Book News, Inc., Portland, OR (booknews.com)
Read More
During the last two decades deregulation and restructuring were widely expected to transform the nation's energy industries, bringing more competitive pricing and abundant, reliable energy to the public. Instead, consumers and investors in the post-Enron era have suffered losses measured in the billions, attributable to market-rigging, accounting fraud, and business plans that were doomed to failure. In this in-depth look at the latest era of greed, the author explains how the leaders of these companies schemed, collaborated or ignored the obvious signs that signaled the oncoming failures of well-established energy companies. Key Features:• What reforms are necessary in corporate accounting and reporting • The consequences of corporate boards that blindly rubber-stamp company policies • Insight into poorly designed deregulation and the nightmare consequences for the public
Read Less