Previous experiments used a large satellite or a hollow cathode to collect electrons. However, plasma limits, in the Earth's ionosphere created a diminishing effect on the current that could be carried. The new tether would carry its own electrons, eliminating the plasma problem. The state's lawmakers, consequently, would be faced with the problem of monitoring how private companies operated various aspects of the hydroelectric system. Under the new legislation, power generation would be open to competition, and new owners could set prices without the system's oversight.
Environmental concerns are also a factor in the deregulation program.
The operating conditions for dams are supposed to be set by the Federal Energy Regulatory Commission, which grants licenses, but the licensing process has often been slow, leading to considerable mistrust. California's hydroelectric system stretches for over 300 miles, and many streams and rivers are now diminished, as their flows have been diverted into canals and tunnels. As a result, the number of migratory fish, such as salmon and steelhead, and resident fish, such as trout, has decreased. The new report is intended to better streamline OIT's decisions. It identifies six process chains that offer the greatest opportunities for energy-use reductions.