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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.

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.