1970–1999 Increased Federal Influence and Pressure to Restructure • The latter part of the 20th century brought changing times for electric utilities. Rapidly increasing global fuel prices in the 1970s contributed to higher operating costs for utilities, causing them to petition state regulators to approve rate increases. • The energy crisis caused energy providers to look for new ways to diversify their portfolios. This led to increased investment in fossil fuel alternatives, e.g., nuclear power. Investments in capital-intensive nuclear power plants and constantly evolving regulatory standards contributed to significant rate increases for consumers, and despite declining global oil prices, rates remained high. During the 1970s and 1980s, utilities built more than 50 nuclear plants responsible for generating over 100 gigawatts under the assumption that fossil fuel prices would continue to rise. • Political pressures mounted in response to high electricity costs, leading to more regulatory scrutiny of proposed generation. Some state and federal regulators—following a national trend toward deregulation of industries like railroads, airlines, finance, and natural gas—envisioned that deregulation in both wholesale and retail electricity markets would yield lower costs for consumers. • Starting in the late 1970s, the federal government accelerated deregulation in electricity markets by incentivizing for independent power producers and promoting renewable/distributed energy resources through the Public Utility Regulatory Policies Act (PURPA). • The Federal Energy Regulatory Commission (FERC) continued this effort through a series of orders during the 1990s to promote restructuring in electric markets. FERC Order No. 888 required open access to existing transmission lines. • In the 1990s, states started to follow the federal government’s lead and formed deregulation policies of their own, hoping to capitalize on the boon promised through deregulation.