Electricity power is an irreplaceable resource in industry for a country. Enough and steady-offered electricity is also the support to develop not only traditional industry but high technology industry. Taiwan is a place, where is lacking of natural resources. There is only 3 % of which can be self ¡Vcontained. In fact, electricity power plays one of important roles in achieving ¡§Economic Miracle of Taiwan.¡¨ Basically, electricity power embraces three parts of power generation, power transmission, and distribution. And it is managed by the way of vertically integration. Traditionally, electricity power is assorted into public utility because of its huge principal and social resources, even concerning with the economy and society of the country and is governed and controlled by the government. Whatever country promotes electricity liberalization, the government and the academic put their eye on foster the total efficiency of management through market mechanisms. Electricity liberalization has been working for more than twenty years. Of course, there are some successful cases, for example, like England, Australia, and etc. They do benefit from increasing the occurrence, the efficiency, and decrease the price after operating electricity liberalization. As to Taiwan, the government has the same policy on it, too. The amendments are under discussion in The Legislative Yuan. By referencing to electricity liberalization of other countries and comparing their experiences with Taiwan, the questions below are searched in this thesis. First, does the policy in Taiwan really satisfy the essence of electricity liberalization? Second, could power generation, power transmission, and distribution of the electricity industry be operated by vertically integrated way? After electricity liberalization, it is important that how to do could get good combined with competition of the market, the offer of steady electricity and the society justice. If not, how to modify the rules would satisfy the needs of country development and expectations of the society.