Abstract
Historically, utilities have been granted a natural monopoly status through the
regulatory process. Under such conditions, utilities need to prove to their regulators that their
expenditures were necessary to comply with imposed “obligation to serve.” When these
prudency arguments are successful, the utilities may recover their costs plus a rate of return.
Some have argued that this structure has not created an environment that fosters productive
efficiency. With deregulation on the horizon, the utility business is changing. To survive the
21st century, utilities need to find ways to improve their efficiency. One such avenue is
strategic staffing.