PWP-021 is the result of the collaborative efforts of the POWER Working Group on Electric Industry Restructuring and Reform. PWP-021 provides a general guide to the policy issues raised by the California Public Utilities Commission's Order Instituting Rulemaking on the Commission's Proposed Policies Governing Restructuring California's Electric Service Industry and Reforming Regulation, which proposes opening portions of the California electric power industry to further competition and introducing performance based regulation for the remaining elements of the industry. The purpose of this guide is twofold. The first goal is to clarify the choices to be made in pursuing these changes and the effects of those choices on a set of criteria by which the results of a restructuring of this nature could be evaluated. The second goal is to identify those issues that present the largest technical challenges to carrying out the Commission's proposal.