Table of Contents

ACKNOWLEDGEMENTS …………………………………………………………………………. I
TABLE OF CONTENTS ……………………………………………………………………………. III
LIST OF TABLES AND FIGURES ……………………………………………………………… IX

PROLOGUE: FAILING RESTRUCTURED INFRASTRUCTURES …………………. 1
The public debate: Does restructuring affect safety and reliability? ………………………………….. 2
A first stab: Outlining the contours of the research problem …………………………………………… 6
Empirical research: Does restructuring affect reliability? ……………………………………………… 12
Opening the black box: How do infrastructures cope with restructuring? ………………………. 17
Reader’s guide ………………………………………………………………………………………………………….. 19
Notes on the Prologue ……………………………………………………………………………………………….. 21

PART I: THEORY

CHAPTER 1: INTERCONNECTED, YET FRAGMENTED …………………………… 29
Introduction ……………………………………………………………………………………………………………… 29
§ 1: On the development of critical infrastructures …………………………………………………….. 29
§ 2: The end of the era of infrastructure expansion and central, vertically integrated infrastructure management ………………………………………………………………………………….. 37
§ 3: The new infrastructure paradigm: Networks of organizations ……………………………… 44
Notes on Chapter 1 …………………………………………………………………………………………………… 46

CHAPTER 2: HOW TO ORGANIZE FOR RELIABILITY? ………………………….. 51
Introduction ……………………………………………………………………………………………………………… 51
§ 1: Reliability, organizations and disasters ………………………………………………………………… 52
§ 2: Normal Accident Theory ……………………………………………………………………………………. 53
§ 3: High-Reliability Theory ………………………………………………………………………………………. 61
§ 4: NAT versus HRT ………………………………………………………………………………………………… 70
§ 5: Beyond organizations: How networks organize for reliability ………………………………. 71
Notes on Chapter 2 …………………………………………………………………………………………………… 76

CHAPTER 3: RESEARCH ON CRITICAL INFRASTRUCTURES ………………… 81
Introduction ……………………………………………………………………………………………………………… 81
§ 1: Towards a research framework ……………………………………………………………………………. 82
§ 2: Research strategy ………………………………………………………………………………………………… 84
§ 3: Methods of data collection …………………………………………………………………………………… 89
§ 4: Methods of data analysis and case study outline ………………………………………………….. 91
Notes on Chapter 3 …………………………………………………………………………………………………… 92

PART II: CASE ELECTRICITY

CHAPTER 4: THEN …THE LIGHTS WENT OUT ……………………………………… 97
Introduction ……………………………………………………………………………………………………………… 97
§ 1: Pre-restructuring ………………………………………………………………………………………………… 98
§ 2: Restructuring California’s electricity industry (1994-1998) …………………………………. 106
§ 3: The first years of California’s restructured electricity industry (1998-2000) …………. 118
§ 4: California’s electricity crisis (2000-2001) ……………………………………………………………. 122
§ 5: Did California’s electricity restructuring affect the reliability of service provision? . 138
Notes on Chapter 4 ………………………………………………………………………………………………….. 145

CHAPTER 5: THE CRITICS’ CASE ………………………………………………………… 151
Introduction ……………………………………………………………………………………………………………. 151
§ 1: The vulnerability of California’s new electricity industry ……………………………………. 152
§ 2: How reliability-enhancing is California’s new electricity industry structure? ……….. 166
§ 3: Conclusion ………………………………………………………………………………………………………… 188
Notes on Chapter 5 ………………………………………………………………………………………………….. 190

CHAPTER 6: POWERING THE GRID ……………………………………………………. 195
Introduction ……………………………………………………………………………………………………………. 195
§ 1: Conditions supporting reliability ………………………………………………………………………. 197
§ 2: Other sources of reliability ………………………………………………………………………………… 208
§ 3: Conclusion ………………………………………………………………………………………………………… 237
Notes on Chapter 6 ………………………………………………………………………………………………….. 237

PART III: CASE MOBILE TELEPHONY

CHAPTER 7: THE WIRELESS REVOLUTION ……………………………………….. 243
Introduction ……………………………………………………………………………………………………………. 243
§ 1: Mobile telephony in the world of the public PTTs (1980-1989) ………………………….. 244
§ 2: From analogue monopoly to digital oligopoly (1989-1998) …………………………………. 250
§ 3: Expansion and full-scale competition (1998- July 2000) ……………………………………… 261
§ 4: After the dot-com crash (September 2000-2004) ………………………………………………… 266
§ 5: Was the reliability of mobile telephony services affected? ………………………………….. 270
Notes on Chapter 7 ………………………………………………………………………………………………….. 275

CHAPTER 8: THE CRITICS’ CASE ………………………………………………………… 281
Introduction ……………………………………………………………………………………………………………. 281
§ 1: A more vulnerable Dutch mobile telecommunications industry? ………………………… 282
§ 2: How reliability-enhancing is the Dutch mobile telephony industry structure? …….. 298
§ 3: Conclusion ………………………………………………………………………………………………………… 319
Notes on Chapter 8 ………………………………………………………………………………………………….. 321

CHAPTER 9: RELIABLE MOBILE SERVICES ……………………………………….. 325
Introduction ……………………………………………………………………………………………………………. 325
§ 1: Conditions supporting reliability ………………………………………………………………………. 327
§ 2: Conclusion ………………………………………………………………………………………………………… 360
Notes on Chapter 9 ………………………………………………………………………………………………….. 361

PART IV: CONCLUSION

CHAPTER 10: CONCLUSION ……………………………………………………………….. 367
Introduction ……………………………………………………………………………………………………………. 367
§ 1: Does institutional fragmentation threaten the reliability of service provision? …….. 368
§ 2: Theoretical assumptions on institutional fragmentation and reliability ……………….. 369
§ 3: Defying bad luck: Coping with institutional fragmentation in critical infrastructures ………………………………………………………………………………………………………………. 372
§ 4: Real-time, networked reliability and its theoretical implications …………………………. 386
§ 5: Wider implications and relevance for restructured critical infrastructures? …………. 391
§ 6: Reliability and institutionally fragmented critical infrastructures ………………………… 393
§ 7: The fundamental problem with restructured critical infrastructures: Increased unpredictability ……………………………………………………………………………………………………. 399
§ 8: Why real-time networked reliability is here to stay ………………………………………………. 401
Notes on Chapter 10 ………………………………………………………………………………………………… 406

APPENDIX A: CONTROL ROOM OPERATIONS …………………………………… 411
Introduction ……………………………………………………………………………………………………………. 411
Operations in and around the control room of the California ISO ……………………………… 411
Operations in and around KPN’s National Monitoring and Coordination Center ………. 419
Notes on Appendix A ………………………………………………………………………………………………. 424

APPENDIX B: LIST OF ACRONYMS ………………………………………………………. 427
APPENDIX C: LIST OF INTERVIEWEES ………………………………………………. 433
California ISO Case (April 2001-December 2001) ……………………………………………………… 433
KPN Mobile Case (October 2001-October 2002) ……………………………………………………… 434
REFERENCES ……………………………………………………………………………………….. 435
SUMMARY (IN DUTCH) ………………………………………………………………………… 463
CURRICULUM VITAE …………………………………………………………………………… 473

Abstract

Critical Infrastructures are the arteries and veins of Western, urbanized societies. The services and products provided by these large-scale, complex systems are considered essential. However, in recent years, more and more new problems seem to crop op after these infrastructures were opened up to market forces. What has happened in these critical infrastructures that we have come to depend upon? How did restructuring affect the reliability of their services? This study takes the reader beyond the debate between states and markets and focuses on the daily control and management of critical infrastructures – the world of control rooms. How has restructuring influenced the ability of those who operate these critical infrastructures to provide reliable services? And how do they cope with the effects of restructuring? Networked reliability presents first-hand accounts from electricity and telecommunications. It reconstructs the operations of the California Independent System Operator (CAISO) during California’s electricity restructuring and the resulting electricity crisis. The second case study describes how KPN Mobile managed its mobile network in the liberalized mobile telphony market in the Netherlands. Networked reliability sheds new light on the effects of restructuring and institutional fragmentation in critical infrastructures that are of interest to reliability scholars, reliability professionals and policy makers involved in critical infrastructure restructuring. One of the most important findings is that the reliability of critical infrastructures becomes increasingly reliant on real-time control room operations. This study shows how those inside the control rooms employ unconventional means to ensure the reliable services under the increased volatility and unpredictability of their new environments.

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