From Edison to Enron: The Business of Power and What It Means for the Future of Electricity

by Richard Munson

The blackout of 2003 illuminated just how dependent America is on electricity. It was not just that some 50 million people in eight states and Ontario were cut off from their televisions, microwaves, ATMs, and email. Without the electrical juice to keep their sockets alive, factory managers were forced to close production lines, city managers shut down water deliveries, grocery store clerks watched their frozen inventory slowly melt away. Economists estimated that the blackout cost Americans $5 billion even as energy analysts were predicting that a similar blackout could happen again. The catastrophe forced us to marvel at the unusual ability of sub-microscopic particles to move like waves inside a wire and cause bulbs to glow. It highlighted the complex requirements for managing the massive generators, transformers, transmission lines, and switch boxes needed to tap and deliver flowing electrons. It encouraged us to recognize the profound impact of electricity on all aspects of commerce and culture.

Such events as the blackout, the Enron debacle, and the California brownouts also reveal the cracks in a 100-year-old industry structure that have been building ever since Thomas Edison, George Westinghouse, and their contemporaries first managed to harness electricity and make it available to the masses, and tycoons, such as Sam Insull and George Norris, began to concentrate financial control and political influence. From Edison to Enron traces the controversial history of this $210 billion industry―the nation's largest―showcasing the key individuals, technological innovations, corporate machinations, and political battles that have been waged over its domination. Munson maintains that today's technological and regulatory infrastructure, as a function of its history, is a relic that has long outlived its usefulness; he points out that two-thirds of the fuel burned to generate electricity is lost, that Americans pay roughly $100 billion too much each year for heat and power, and that environmentally unfriendly generators are the nation's largest polluters. Meanwhile, innovations in technology and business models are being blocked by entrenched monopolies. Ultimately, Munson argues that current policies and practices, including those favored by the Bush Administration, are preventing entrepreneurs from producing more efficient, healthy, and sustainable power supplies. Moreover, he presents an agenda for business and policy reforms that will stimulate economic development in the United States and around the world.

Genres: Business, History, Nonfiction

216 pages, Hardcover

First published September 1, 2005

About the author

Bloomsbury in June 2025 will release "Power Corrupts: Cleaning Up America's Biggest Industry," which explains the recent rise of racketeering and bribery by utilities seeking billion-dollar bailouts for dirty and uneconomic power plants.
W.W. Norton in November 2024 published "Ingenious: A Biography of Benjamin Franklin, Scientist."
Norton previously released "Tesla: Inventor of the Modern," a biography of the under-appreciate genius who brought us the electric motor, radio, robots, and remote control.
Other Richard Munson books include; "Tech to Table: 25 Innovators Reimagining Food;" "From Edison to Enron," a history of the electricity industry; "The Cardinals of Capitol Hill," a behind-the-scenes look at congressional appropriators; and "Cousteau: The Captain and His World," a biography of the undersea explorer.

In addition to writing, Munson has been a senior director for the Environmental Defense Fund, senior vice president of Recycled Energy Development, executive director of the Northeast-Midwest Institute, director of Solar Lobby and Center for Renewable Resources, co-coordinator of Sun Day, coordinator of Environmental Action Foundation, and director of the University of Michigan's Pilot Program.

Reviews

[Matthew Flannery · Rating 4 out of 5]

Fantastic history of the Power Industry. I had perspective of the market in its current form, bit this gave a somewhat logical history to the illogical systems we have in place now. It really hit a sweet spot in the middle describing the history of regulation and monopolies, but ended on a soft note towards the end when describing renewables and a slightly biased description of the then-current political climate. Overall highly recommended.

[Damon · Rating 3 out of 5]

Energy will likely be one of the greatest challenges of the 21st century, and yet few people have more than a rudimentary understanding of the the system that makes lights come on at the flick of a switch. This book provides a useful account of how we got where we are today, from the invention of the light bulb to the California energy crisis.

[Peter · Rating 4 out of 5]

Good look at the origins of the electricity industry and some suggestions for improvements. The author generally favors deregulation as a tool, but not in the void of regulation, and specifically mentions the need to include traditionally externalized costs (esp. pollution) in the market price of energy.

[Peter Edwards · Rating 5 out of 5]

Well written history. Illuminating profiles of key 20th century players, particularly Thomas Edison and Samuel Insull. The book takes this history to suggest how the electricity industry can become more innovative and efficient.

[David Wilson · Rating 5 out of 5]

Engaging history of the 20th century, seen through the perspective of electricity. Good portraits of Thomas Edison, George Westinghouse, Samuel Insull, and other power wizards.