Customers were more than willing to pay because electricity so greatly improved their quality of life and productivity of business. They were allowed to recover all of their costs of doing business plus a profit (ROI, or DSC, or TIER) from their captive consumers. They were able to operate as regulated cost-plus monopolies in protected, defined service areas. Electric utilities were vertically integrated, owning and operating both the generation and the transmission and distribution networks, They operated for nearly a century with an exceptionally favorable business model. Universally available, reliable and affordable electricity became associated with the United States' improvement in quality of life for its citizens, increased productivity of business and industry, and national competitive advantage. This is the fourth installment of my article on why electric distribution cooperatives must be able to operate smart distribution grids with fiber optic networks because of the advent of fundamental electric utility industry restructuring from technology to infrastructure to business models.
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