She describes that Texas has better competition than other U.S. states, because the regulators restricted the utilities to providing network-related services, so that the other supply chain levels (i.e. retail offerings) become open for competition.
Interestingly, The Netherlands also did this, while other EU nations held back. They are the Texas of Europe in this regard.

"The best feasible approach to such a situation, in which a regulated monopolist sits in the middle of a vertical supply chain with competitive or potentially competitive markets on either or both sides, is to quarantine the monopoly by restricting its market participation to its regulated functions. The best way to do this is to separate the ownership and control of the regulated functions from the other vertically-related functions."

http://knowledgeproblem.com/2011/08/11/electricity-restructuring-and-the-fail...

In a paper, published tomorrow, she makes the case for quarantine of monopolists, using two of the most favourite examples in recent smart grid discussion: An assumed (or hoped-for) parallel between the recent mobile technology revolution and smart grid technology, and the ever-delayed arrival of the smart home:

"The example I have in mind as a counterpoint, the example I want to explain and understand, is consumer-facing electricity technologies, like thermostats and home energy management systems. For the past several years there has been considerable innovation in this space, due to the application and extension of digital communication technology innovations. But despite the frequent claims over the past few years that this year will be the year of the consumer energy technology, it keeps not happening."

http://knowledgeproblem.com/2012/11/16/regulations-effects-on-innovation-in-e...