ELECTRIC GROUP 4

CHARGES Abhishek Ghosh – 03/14

THE SOCIAL CONSTRUCTION OF RATE SYSTEMS
Abinash Das – 05/14
Sunil Badgujar – 15/14
Suraj Kumar Bagel – 39/14
Sarath Kumar G – 44/14
Saunak Saikia – 47/14
1. IDENTIFY THE DIFFERING INTERESTS OF VARIOUS GROUPS IN THE ELECTRIC RATE
SYSTEM WAR

Barstow’s system supporters

 Haskins, who led the Meter and Instruments Sales Department in General Electric - Purchased the
right to produce the meter from Barstow
 Westinghouse – Purchased rights to product his meter

Barstow’s Metering System

 Time-varying rates - consistent with productive efficiency and short-term profit maximization
1. IDENTIFY THE DIFFERING INTERESTS OF VARIOUS GROUPS IN THE
ELECTRIC RATE SYSTEM WAR

Barstow’s system supporters’ interest

 Encourage developments within the industry - increase the consumption of electricity during the day.
 Barstow was a patented inventor of his system- was promised substantial business if successful.
 Future developments in electric appliances could create new opportunities for balancing the load.
 Boost the Barstow’s continuing close relationship with equipment supply companies, which had
purchased the rights to produce his meter.
1. IDENTIFY THE DIFFERING INTERESTS OF VARIOUS GROUPS IN THE
ELECTRIC RATE SYSTEM WAR

Wright system supporters

 Insull - The Edison circle's leader and elected President of both associations NELA and AEIC.
 Insull’s allies, Ferguson, Edgar, and Scovil

Wright Metering System

 Did not penalize usage at peak times. Pursued “growth dynamic” strategy - revenue maximization and
monopoly building
1. IDENTIFY THE DIFFERING INTERESTS OF VARIOUS GROUPS IN THE
ELECTRIC RATE SYSTEM WAR

Wright system supporters’ interest:

 Priority to acquire new even if they were achieved at the high cost of an unbalanced load.
 Increased revenue through
 Emphasized large-scale provision
 Vertical integration of generation
 Transmission and distribution
 Continuous expansion of the customer base
 Expand the central station business in the short run
 Actively combated alternatives based on decentralized, smaller-scale provision with separation of functions by company – Isolated Generation.
 Pre-empt the threatening competition from gas lighting, not-for profit electric systems, urban electric railways and isolated generation.
 Gain the size of operations for status and power in industry and community
 Insull held a financial stake in Wright’s meter
2. WHY DO YOU THINK ONE SYSTEM COULD UPSTAGE THE
OTHER SYSTEM?

 Economic outcomes difficult to assess

 Uncertainty about the efficiency and fairness limited actors to chose rationally

 Particular interests groups used this as an opportunity to promote their agenda

 Institutional and political factors were more powerful

THANK YOU