Electric power deregulation generates state tax problems.

Ongoing developments in the deregulation of the electric power industry are raising issues concerning state utility taxes. The US Supreme Court's 1997 decision in General Motors v. Tracy, which holds that Ohio could force GM to pay tax on out-of-state fuel purchases, further complicates the issue. The approaches taken by Pennsylvania and New York in the deregulation of electric and natural gas utilities respectively, and the related constitutional issues, are discussed in detail.