Market Analysis Program (MAP) Industry Sector Markets 1991-1996 Sector Utilities INPUT 1280 Villa Street, Mountain View, CA94041, (415) 961-3300 DECEMBER 1991 INDUSTRY SECTOR MARKETS 1991-1996 UTILITIES SECTOR INPUT 1280VillaStreet,MountainView,California94041-1194 (415)961-3300 UTILITIESSECTOR INPUT Publishedby INPUT 1280VillaStreet MountainView,CA94041-1194 U.S.A. MarketAnalysisProgram(MAP) IndustrySectorMarkets,1991-1996 UtilitiesSector Copyright©1991byINPUT. Allrightsreserved. PrintedintheUnitedStatesofAmerica. Nopartofthispublicationmaybereproducedor distributedinanyformorbyanymeans,orstored inadatabaseorretrievalsystem,withouttheprior writtenpermissionofthepublisher. MAPUT•537•1991 11 UTILITIESSECTOR INPUT Table ofContents Introduction I-l A. PurposeandMethodology I-l 1. Purpose I-l 2. Methodology I-l B. IndustryStructure 1-2 C. OrganizationandContentsofReport 1-5 II Trends,Issues,andEvents XX X A. Introduction II- 1. Homogeneity/Heterogeneity II- 2. BasicFunctions n-2 a. Monopoly n-2 b. ObligationtoServe n-3 c. RateofReturn n-3 B. Trends II-3 1. SupplyandDemand n-3 2. RegulatoryEnvironment n-4 a. ClimateofDeregulation n-4 b. ConsumerismandthePUCs n-4 c. BureaucraticImplications n-4 3. IncreasingCompetition II-5 a. GasversusElectric II-5 b. IPP/Cogenerators II-5 c. ResurrectionofMarketing II-5 4. CostContainment II-6 a. Low-CostSupplier II-6 b. Downsizing/Righ—t-Sizing II-6 c. Implementati—on Top-downversusBottom-up II-6 d. Organization StrategicBusinessUnits n-6 C. IssuesandEvents n-7 1. Diversification/Bankruptcy/Merger n-7 a. Diversification II-7 b. Bankruptcy n-7 c. Merger n-7 MAPUT ©1991byINPUT.ReproductionProhibited. 1111 UTILITIESSECTOR INPUT Table ofContents (Continued) ii 2. Environment II-8 3. Fuels II-9 a. Nuclear II-9 b. Gas II-9 c. OtherFossil II-9 III InformationSystemsEnvironment m-i A. Overview m-i 1. Evolution m-i 2. Centralization m-2 3. CorporateSystemsversusEngineering/Operations m-3 B. Applications m-4 1. CustomerSupportSystem(CSS) m-4 2. MarketingSupportSystems m-5 3. FinancialSystems m-5 4. TransmissionandDistribution(T&D) -Work/Materials III-6 Management 5. FacilitiesManagement III-6 6. SupervisoryControlandDataAcquisition III-7 (SCADA)/EnergyManagementSystems(EMSs) 7. Engineering III-8 8. PowerPlantApplications III-9 C. InformationSystemsIssues IH-IO 1. DataIntegrity HI-10 2. InformationSystemsAsanInvestmentversusanExpenseIII-1 3. CorporateSystems IE-11 4. AgingApplicaionPortfolio in-ii D. ImpactofNewTechnologies in-12 1. Image/Graphics in-12 2. UNIX/OpenSystems in-12 3. RelationalDataBaseManagementSystems in-13 4. Data/VoiceIntegration in-13 5. CASEMethodologies in-14 6. ArtificialIntelligence in-14 E. InformationSystemsOrganizationandBudget in-14 F. InformationSystemsOrganizationObjectives in-15 IV InformationServicesMarket IV- A. Overview IV- 1. MakeorBuy IV- 11 ©1991byINPUT.ReproductionProhibited. MAPUT