Due to changes in the economics and technology of electric generation, competition is coming to the generation part of the industry. As a result, traditional economic regulation of electric generation is expected to be relaxed or abandoned altogether. The transmission and distribution components of electric utilities are expected to remain regulated monopolies.

The move to a competitive generation market has given rise to a broader move to retail electric competition. Under this change in the electric industry, all consumers --at least theoretically-- would be able to choose an electricity vendor, much in the same way that consumers may select their interexchange telecommunications service provider today.

The move to a competitive electric industry raises a host of consumer protection issues. These consumer protection issues would be common to both competitive electric and natural gas companies. FSC has considered a range of consumer protection problems -- and their solutions-- arising from competition.