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The article discusses a regulatory system that rewards energy companies for innovations. It is stated that nearly 70% of U.S. greenhouse emissions comes from generating electricity and heat, whereas only 19% comes from automobiles. According to the author, the U.S. Congress could move beyond Lieberman-Warner bill and develop an energy plan that satisfies both pro-business and pro-environment advocates. He states that each producer of electricity and thermal energy would obtain initial allowances equal to the previous year's national average output of CO[sub 2] emissions per delivered megawatt-hour of electricity and Btu of thermal energy.

The article stresses the need for innovations that will change the basic structure of the electricity industry. Devices like modern generators, motors and computers offer increased efficiency and reliability in the production and use of electricity, as well as reduced pollution. The U.S. power system is already old. The average generating plant was built in 1964 using 1959 technology, and more than one-fifth of the nation's power plants are more than 50 years old. Utilities have not improved their delivered efficiency, and as of January 2006, high-technology businesses demand more reliable power than the current system can provide. High-voltage transmission lines, moreover, were designed before planners imagined that enormous amounts of electricity would be sold across state lines, and, consequently, the distribution system often becomes overloaded, resulting in blackouts.

Deals with issues on the development of energy-economic models in the U.S. Results of communication conflict between economists and policymakers on the energy-economic legislation; Impact of government policies on the energy market; Outcome of the models using different factors and assumptions; Demands for the improvement of economic models.

Focuses on how to restructure the electric power industry in ways that spur technological innovations and productivity throughout the United States economy. Significance of removing the barriers to competition in remaking an outdated system; Federal legislation concerning the industry; Technological innovations in the electric power industry.

Opinion. Presents the author's view about the electric utility industry in the United States. Historical background on the electric utilities industry; Major changes in the industry; Tennessee Valley Authority (TVA) and Power Marketing Administrations (PMA); Account on the PMA/TVA beneficiaries.

Reports on the federal policies and expanding local control to stimulate economic development by redeveloping industrial sites. Issues facing urban development; Barriers to industrial site reuse; 1980 Comprehensive Environmental Response, Compensation and Liability Act; Local communities' initiative in cleaning contaminated sites; Components of a federal brownfields strategy; Bills introduced by federal law makers.

Argues that the removal of barriers to competition in the United States power utilities industry will encourage innovations and disseminate state-of-the-art electric systems. Importance of eliminating policy barriers; Trend in electricity industry in other countries; Efforts of the government to spur competition.