Empirical evidence from electric-power-producing firms suggests that the largest electric-power-producing firms are not natural monopolies because

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The U-shaped average cost curve indicates that there are ranges of output where average costs are decreasing (economies of scale) and ranges where they are increasing (diseconomies of scale). This suggests that the largest electric-power-producing firms are not natural monopolies because, beyond a certain point, increasing the scale of production does not lead to lower average costs, which contradicts the basic characteristic of a natural monopoly where it is most efficient (cost-wise) for production to be concentrated in a single firm.

Empirical Evidence from Electric-Power-Producing Firms Suggests That the Largest Electric-Power-Producing