The lengthy review is the reason 23 deals are pending, including some that were announced nearly two years ago. As with any kind of experimentation, it doesn't always work. The business of uncertainty States that have high electric rates, such as California and Massachusetts, were the first to throw open the doors to competition. Consumers in those areas, especially large industrial and commercial users, wanted lower prices and better service. The changes have forced utilities to consider joining with another company to gain market share.
Consolidation is a common thread among industries faced with increasing competition.
In banking and telecommunications, the trend has peaked as companies build super-regional or even national networks. Look at Bank of America or the pending GTE-Bell Atlantic telephone combination. So far, the utility shakeout has primarily brought together neighboring power companies. Such deals allow the combined company to cut costs by eliminating duplicate corporate staff and billing centers and sharing power plants. A larger utility also has more buying power, which can reduce its biggest expense, fuel.