Electricity regulation has mostly remained unchanged for the last 100 years. States enter into a “regulatory compact” with electric utilities whereby the State grants the utility an exclusive franchise right to provide electric service to customers within a specific service territory in exchange for the utility consenting to be regulated by the State. Even in States where competition has been introduced, a new regulatory compact is required to allow for the development of community microgrids.
Patrick L. Morand, Duane Morris LLP
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