Increasing consolidations/mergers expected for electric industry
The electric industry should expect an increasing number of consolidations and mergers, continuing stock volatility and deregulation in 1995, according to Lawrence D. Gilson, Arthur Anderson, Los Angeles, Calif., and Timothy P. Gardener, Arthur Anderson, Washington, D.C. Gilson and Gardner are the co-authors of Predictable Patterns: Navigating the Continuum from Protected Monopoly to Market Competition. This study describes five stages through which all regulated companies move and the behaviors exhibited at each stage.
Some of the key trends Gilson and Gardener predict include industry restructuring, increased investment risk, increased productivity, diversification and price reductions. Deregulation means consumers can expect reduced power bills and more tailored services. However, the change, according to Gilson, means that consumers will have to choose among options offered by competing suppliers.
For more information or a copy of the study, contact Gilson at (310) 826-4226.