Why did California restructure its electricity system?
The California Public Utilities Commission began exploring ways to restructure Californias electric system in 1993. At the time, the states electric rates were high, existing power plants were old, and utilities were unwilling to procure low-cost power from non-utility generators. Electric restructuring started as a way to permit new companies to rebuild and improve the existing electric system at a lower cost to consumers. Restructuring also aimed to give consumers direct access to lower cost power that utilities were unwilling to procure. That is why consumers and policy makers joined in supporting legislation that started a five-year transition from an inefficient monopoly supply system toward a competitive market for power.
