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Systems Thinking, 3rd Edition by Jamshid Gharajedaghi

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Chapter 13. Commonwealth Energy System
The American utility system, despite whatever self-criticism is leveled at it, was the envy of the world. To have covered and provided for the insatiable energy needs of a vast continent in a span of a few decades could not have been achieved without gigantic vision, phenomenal leadership, and Herculean effort. But with success came complacency. Utilities closed their gene pool, exclusively dealing with the insiders to the industry. Utility regulations were originally established to restore public confidence in the monopolistic system and serve as a proxy for competition. But the rate making evolved into a “cost plus” system with respect for stability, harmony, and camaraderie over competency. Unfortunately, ...

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