Utility deregulation will have tangible and intangible effects on power quality requiring industry-wide action to maintain adequate standards. These effects are discussed in the first part of the paper. The increasing trend towards more extensive use of power electronic control at the generation, transmission and utilization systems following deregulation has power quality implications that will affect the standards, system simulation and monitoring tools. The paper reviews the present methods available in these areas to achieve specified levels of power quality in the deregulated environment.