The Power Brokers: The Struggle to Shape and Control the Electric Power Industry

by Jeremiah D. Lambert

How the interplay between government regulation and the private sector has shaped the electric industry, from its nineteenth-century origins to twenty-first-century market restructuring.

For more than a century, the interplay between private, investor-owned electric utilities and government regulators has shaped the electric power industry in the United States. Provision of an essential service to largely dependent consumers invited government oversight and ever more sophisticated market intervention. The industry has sought to manage, co-opt, and profit from government regulation. In The Power Brokers, Jeremiah Lambert maps this complex interaction from the late nineteenth century to the present day.

Lambert's narrative focuses on seven important industry players: Samuel Insull, the principal industry architect and prime mover; David Lilienthal, chairman of the Tennessee Valley Authority (TVA), who waged a desperate battle for market share; Don Hodel, who presided over the Bonneville Power Administration (BPA) in its failed attempt to launch a multi-plant nuclear power program; Paul Joskow, the MIT economics professor who foresaw a restructured and competitive electric power industry; Enron's Ken Lay, master of political influence and market-rigging; Amory Lovins, a pioneer proponent of sustainable power; and Jim Rogers, head of Duke Energy, a giant coal-fired utility threatened by decarbonization. Lambert tells how Insull built an empire in a regulatory vacuum, and how the government entered the electricity marketplace by making cheap hydropower available through the TVA. He describes the failed overreach of the BPA, the rise of competitive electricity markets, Enron's market manipulation, Lovins's radical vision of a decentralized industry powered by renewables, and Rogers's remarkable effort to influence cap-and-trade legislation. Lambert shows how the power industry has sought to use regulatory change to preserve or secure market dominance and how rogue players have gamed imperfectly restructured electricity markets. Integrating regulation and competition in this industry has proven a difficult experiment.

Genres: History, Audiobook, Nonfiction, Economics, 20th Century

395 pages, Kindle Edition

First published September 4, 2015

About the author

Jeremiah D. Lambert is a lawyer in Washington, D.C., whose practice focuses on clients in the energy business. He is the author of Energy Companies and Market Reform: How Deregulation Went Wrong and Creating Competitive Power Markets: The PJM Model.

Reviews

[AttackGirl · Rating 2 out of 5]

I do NOT agree with the author assessment of ENRON, If anyone can recall the Paper flip chart and what happened to all the companies the government decided to list on that flip chart. So then think about what really happened to ENRON and really how that unhappy nasty extremely jealous woman changed the landscape for all whistle blowers and what it meant. Even now what does it mean to honor and work for a company that pays you and honest salary for doing your job? Did she have an MBA have any understanding whatsoever of the energy market or how the stock market worked… well I will tell you NO she did NOT! Just like the nephew with the leftist non working big mouth jealous punk who ruined his family’s business because they have no clue and now have a hotline to call to bring down everyone and cause havock on everyone lives. The reason the people lost their pension was because of the government, because of the whistle blower because of that big green monster called JEALOUSY! The dancing girls, trips, cars, attitude something the fat miserable woman could not stand!

So do you recall Ma Bell? Now look what each person pays for a cell phone and do you think there is no collusion? No standard fees how much do you pay and do you know who gets free phones, free internet, free cable, free tablets and who is paying those bills in a country bragging about equality, about freedom…. The USA is the least free country on the planet. WAKE UP SLAVES and ask yourself why is the US government involved in any BUSINESS whatsoever?

Exodus 20

“Thou shalt not covet thy neighbour's house, thou shalt not covet thy neighbour's wife, nor his manservant, nor his maidservant, nor his ox, nor his ass, nor any thing that is thy neighbour's.”

NOTHING THAT IS THY NEIGHBORS! NOTHING

[Christopher Reiff · Rating 4 out of 5]

Good history and education on the electric power industry in the US from its beginning to present day. I learned a number of things, but two really stood out for me. First, Arthur Anderson (founder of the Arthur Anderson Accounting firm) helped sow the seeds of deregulation almost a century ago which is ironic given his firm 70 years later would be the auditors of Enron. Second, the largest municipal bond failure in US history happened in my home state of Washington. The architect of which went on to become secretary of energy in the Reagan administration.

[Jeff · Rating 4 out of 5]

A very thorough glimpse into major players in the development of electric power in the United States. Consolidation of power companies, Tennessee Valley Authority, Bonneville Power, Enron, Duke, and the influx of renewables. There are many gems of knowledge. The major downside is that it is rife with jargon and required subject matter expertise that it can be challenging read for the casual reader.

[Nate Campbell · Rating 3 out of 5]

Somewhat dry and uninteresting book chronicling the history of the electric power industry. Some good stories about the hubris of Enron, a good profile of Amory Lovins and also Jim Rogers. Most people covered in this book fail to recognize that public utilities are natural monopolies and not the same as true market conquering entrepreneurs.

[Derek Kreider · Rating 2 out of 5]

I wanted to give this more stars because the information was really good, but the book was so boring and dense. Unless you are VERY interested in the topic and have some background knowledge, it's just really dense to work through.

[William McIntyre · Rating 5 out of 5]

Certainly a dense read but for someone curious about how my own industry was shaped in America this book is great.

I recommend prompting AI for chapter summaries prior to each chapter to help guide you through the important figures, legislation, utilities and projects.

[Timothy Hade · Rating 4 out of 5]

Dense. But a really good and comprehensive explanation of how the US electricity industry evolved.

[Gowri Sankar · Rating 5 out of 5]

This is a fantastic book in a great format for someone who wants to know the history of utility industry in US.

[Fearless Leader · Rating 3 out of 5]

I am no stranger to dry corporate histories, but this book was an exemplar in that respect.

[Gregg · Rating 2 out of 5]

This is pretty boring.

[Hind · Rating 3 out of 5]

Not a bad book, but among the most boring, surely.

[Nick Crowley · Rating 4 out of 5]

Very well researched.

[Sonaar · Rating 4 out of 5]

Very useful and informative, if unenthralling.

[Jessica Lyu · Rating 5 out of 5]

This is a great book! Fascinating stories with plenty of details! Just when you think the power sector can't get any more exciting, the next chapter proves you wrong! A must-read collection of key stories that, to my mind, could help explain how the power sector has evolved into its current form (e.g., what policies have been adopted, what's the regulation enforced, etc.) since its birth in the late 1800s. The author's background in energy law brings rich legal detail to each story, yet the book is still fun - not dull - to read even when you find yourself bumping into complex legal cases and terminology.

[Ted · Rating 4 out of 5]

Great historical look at the power industry. All about the market and regulatory aspects of the industry. Each chapter focuses on one individual, their company, and the effect they had on the industry. There isn't much talk about the technical changes and only covers renewables and climate change towards the end. I do recommend though as a historical overview and plan to read more about Enron.

[Scott Sowers · Rating 4 out of 5]

Deep and well researched non-fiction history of the US electric utility industry.