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17. "Amtrak to Expand Transmission Capacity along Northeast

Corridor," Electric Power Alert, December 4, 1996, p. 8.

18. See John Kwoka Jr. Power Structure (Boston: Kluwer,

1996), pp. 43-49.

19. Matt Walsh, "Gatekeeper," Forbes, May 22, 1995, p. 252.

20. Peter Huber, "Smart Toasters," Forbes, June 5, 1995,

p. 166.

21. "Frontier Plans $2 Billion Network," CNNfn, Financial

Network, Cable News Network, Inc., October 21, 1996.

22. Another unappreciated potential source of local grid

competition is today's pressing need to upgrade Internet

bandwidth.  Distribution line installation could piggyback

on installation of cable modem wiring, Integrated Services

Digital Network lines, and other home-wiring options, re-

gardless of whether copper wires are the medium for both

power and data transport.

23. Timothy Brennan et al., A Shock to the System: Restruc-

turing America's Electricity Industry (Washington: Resources

for the Future, 1996), p. 62.

24. Arthur Fuldner, "Upgrading Transmission Capacity for

Wholesale Electric Power Trade," Energy Information Adminis-

tration Electric Power Monthly, June 1996, p. xi.

25. Deputy Energy Secretary Charles Curtis, in discussing

the tug of war over deregulation by state and federal au-

thorities, notes that "electricity markets do not behave

according to political boundaries" and that "electrons don't

respect borders."  Quoted in Margaret Kriz, "Power Brokers,"

National Journal 28, no. 48 (November 30, 1996): 2596.

26. Fuldner, p. xii.

27. Narain Hingorani and Karl Stahlkopf, "High Power Elec-

tronics," Scientific American, November 1993, p. 78.

28. Richard Balzhiser, "Technology: It's Only Begun to Make

a Difference," Electricity Journal, May 1996, p. 32.

29. Demsetz, p. 58.