Edison built a direct-current based distribution system for electricity and wanted to franchise it. His business empire (later consolidated into the Edison General Electric Company) supplied various critical components of this system - lamps, dynamos, wiring, etc. However, direct-current based systems were small, and could serve only the nearby offices and homes.
In contrast, the alternating current system, developed by the Serbian inventor Nikola Tesla, allowed the utility companies to transmit electriciy over great distances. Companies like those of Samuel Insull, who used to be the secretary of Edison, perfected the large scale utility model. Eventually, the age of the private power plant was over. The utility had triumphed.
The Big Switch: Our New Digital Destiny By Nicholas Carr
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