Their power plants will have to sell power into a pool, which will buy from the cheapest producers, including out-of-state utilities.

A cheaper producer would have given them just what they wanted.

"We're taking market share from the cheaper producers in Korea, Japan and even the United States."

A long time ago, Sheffield was the world leader for cutlery, but it has been overtaken by cheaper producers.

Mr. Baker's concern over Southeast Asia reflects the concern many academic economists have about creating regional agreements to steer business toward allies instead of the cheapest producer.

In the early 1980's, before knitting, weaving and other textile jobs were threatened by cheaper foreign producers, the industry as a whole employed 57,000 people, according to industry figures.

Ms. O'Donnell called them "the cheapest producers in the free world," and Mr. Lane added, "They're doing a national tour of 'Guy and Doll.' "

Under deregulation, consumers will be able to buy their power from almost anywhere, and inevitably they will gravitate to the cheapest producers.

He also cited steep drops in the price of televisions, which are being driven down by cheap producers in China and elsewhere in Asia.

Buyers are expected over time to shift their purchases to the largest and cheapest producers.