To perform this analysis, it is necessary to imagine the regulatory scheme for each technology at the same stage of development. Therefore, this analysis is divided into two parts. Section 4.7.2 will compare the regulations for each technology as they exist at present, without regard to probable future areas of regulatory activity. Section 4.7.3 will attempt to evaluate how national trends are likely to influence technology regulation in the near future. 4.7.2 Comparison of Present Regulatory Schemes Approach. Analysis of the overall regulatory schemes associated with different technologies will focus on three areas: • The justifications for government regulation of energy technology. • The level of government that is primarily responsible for the regulatory task. • Where possible, the cost of regulation to both the government and the owner of the electricity system. For the purposes of this section, the term "government regulation" is defined as any conscious and systematic government effort to influence the development and deployment of an energy technology that would otherwise be left to evolve in the private market place. Justifications for Regulation. A recent article by Stephen Breyer-^^ represents one of the most up-to-date efforts at an overview of our regulatory institutions. He organizes regulations into a number of categories, each of which represents a distinct justification for regulation. Justifications, he points out, consist of the best "public interest" arguments of those who have advocated regulatory measures, regardless of whether these reasons actually motivated the governmental action. In effect, these justifications represent the best policy explanation of why government does what it does. Breyer defines a number of regulatory categories that are not applicable to the issues being considered here. For the purposes of this section, his regulatory justifications can be reduced and adapted to three: • Control of Monopoly Power. This category includes all of the numerous forms of regulation intended to control the freedom of monopolies or to restrict competition in favor of monopolies. • Correction for Externalities. This includes any government-imposed requirement intended to prevent the general public from paying for costs that are more properly assumed by the entity that creates them. Environmental control regulations, for example, are included in this category.
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