The transition to a market-oriented public utilities model is the result of six factors. These are technological changes, weak performance of utilities, lost consumer confidence in commissions, emergence of large players, change in management attitude and weakening influence of regulatory agencies. A structure-conduct-performance model of regulatory reform in the public utility industry is developed. This paradigm focuses on optimizing network economies while reducing transaction costs and involves the transparent administration of the network, common carrier status, cost-based network pricing and open access. Under this model, networks would be allowed to have a common carrier status. Structure and conduct guidelines would be applicable to major players and likely abuses in affiliate transactions.
