Potential for 'independent' electricity kills power line: Jersey utility avoids long-term risks associated with $500 million project. (Duquesne Light Co.)

DOWNTOWN -- In the end, it was the market that killed Duquesne Light Co.'s cross-state power-line project, not the angry protests that came to symbolize the ill-fated effort.

Like the airline, trucking and natural-gas sectors that were pushed into an open marketplace through deregulation, the electricity industry is becoming increasingly competitive. A variety of sources close to the deal acknowledged it was this new competition that made the power line incompatible with the marketplace.

When the project was voted down by New Jersey regulators Dec. 9, it was not a surprise to Duquesne Light parent DQE, or to its New Jersey partner, General Public Utilities Corp., which pulled out of the deal a few hours later.

Cancellation of the deal negated an expected 3,000 temporary and full-time jobs in the Pittsburgh area …