State-owned Eskom has a near-monopoly on power generation in South Africa. Though one might think government control would make the business of managing power supplies easier, the story of Eskom's recent troubles shows that state ownership, in and of itself, is neither the problem nor the solution. More important than ownership structure are policy and planning decisions that take the long view. Eskom's cautionary tale should remind those involved in the power industry anywhere in the world that-to vary a disclosure from the financial sector that too few have paid attention to-past performance is not a guarantee of future success.