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HAUPPAUGE, NY -- While the recent spate of energy company bankruptcies and threatened bankruptcy filings seem to have taken the industry by surprise, regulators predicted the trend a decade ago.
In the years 1993 through 1995, R.J. Rudden Associates, Inc., a strategic, economic, and management consulting firm specializing in energy matters, conducted a series of surveys of state regulatory commissions on their attitudes and opinions towards the then impending restructuring of the energy industry. Regulators first expressed their fear of the potential for bankruptcies in 1993, when about a third of the respondents stated there would be an increased risk as a result of deregulation. As the patterns of restructuring better defined themselves in the subsequent years, by 1995, fully 62% of the regulators ...