Why are utilities monopolies?
In the 1920s, the utility industry was not regulated federally and huge utility empires were created across the country. However, the expansion was achieved by accumulating a huge debt caused by numerous acquisitions. Indeed, the house of cards it created and the eventual financial collapse of the utility industry is considered to be a contributing factor to the Great Depression. Because of the ratepayer abuse caused by no regulation, municipalities began creating publicly owned utilities. As a reaction against public ownership, conservatives proposed creating investor-owned utility companies that would be granted state franchised monopolies that would be regulated by state government. Indianas utilities grew out of these arrangements. Indiana has over 30 municipal electric utilities and five major investor-owned electric utilities. We also have 3 major gas companies. Some of these investor-owned utilities are gas and electric companies, such as NIPSCO and SIGECO. All the investor-owne
