ELECTRICITY
Electricity has been known since ancient times,
but scientists could not make use of it safely
until the eighteenth century. Thomas Edison’s
invention of the electric lightbulb in 1879
sparked the demand for electric power that con-
tinues to this day, ultimately resulting in the
need for legislative and regulatory controls on
the electric-power-generating industry.
History
By the end of the nineteenth century, the
United States had completed its transition from
using wood as a major energy source to using
coal, and the next transition from coal to oil and
natural gas was just beginning. By the early
twentieth century, both homes and businesses
increased their demand for electric power, and
electric utilities obtained long-term franchises
from municipalities.
In 1920, the Federal Power Act (FPA), 16
U.S.C.A. §§ 791a–828c, was passed in response
to increased competition between electric utili-
ties and a lack of consistent service to rural
areas. The Federal Power Act gave the Federal
Power Commission the authority to license
hydroelectric plants. Later, President FRANKLIN
D. ROOSEVELT encouraged Congress to create
part II of the act, which gave the Federal Power
Commission the power to regulate the trans-
mission of electric energy (16 U.S.C.A. §§
824–824m). This legislation was necessary to
guard against potential abuses of the utility
companies’ monopolistic structure and to
ensure adequate and consistent service nation-
wide.
As more and larger electric generating plants
were constructed and as more electric power
lines were strung, legislators believed that
through economies of scale, electric utility
monopolies could actually offer lower costs to
consumers than could competition between
smaller utilities. Because of the capital-intensive
nature of providing electric power, and the
sunken costs of building plants and stringing
