What is Restructuring or Deregulation?

Historically, the electric industry has been comprised of three units: generation, transmission and distribution.

Generation is the component that produces electricity, usually from nuclear, coal, natural gas or hydropower resources.  Transmission moves the electricity from the generating stations over high volume towers closer to the point of use.  Distribution is comprised of local lines that move the electricity from the tall towers to homes and businesses.  Many times in Nebraska, snow, wind and ice storms have destroyed distribution lines, but rarely transmission lines.

Many states have decided to require electric companies to choose what type of business they want to operate:  generation, transmission or distribution.  In essence,  transmission and distribution will still be operated as monopolies and only generation will be opened to competition.

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