Today, in Louisiana, there are two parallel systems of electric generation. One system, representing one fifth of the state's generation, is owned and operated by industrial NUGs. The other system, representing four fifths of the state's generation, is owned and operated by the regulated electric utilities.
Similar situations exist in other states.
Reasons for how and why these systems exist simultaneously are discussed in Appendix A . These price data suggest that electricity prices for all consumers could be reduced by the introduction of competition into the electricity market. This concept has created a move to deregulate the electricity generation system and provide all future electricity generators, NUG or utility, with equal access to electric transmission systems. Reaping the benefits of such competition, however, will not be without cost. Non utility generators through use of newer, more efficient generation technology have the capacity in a competitive generation market to capture substantial market share from the utilities.