This paper seeks the optimum way to supply electric load growth and finds that full reliance on distributed generation (DG) would supply power for 5.8 cents per kWh versus 8.9 cents per kWh from new central generation. DG reliance would avoid $291 billion in capital by 2020, reduce 2020 incremental power costs by $52 million and reduce NOx by 68%, SO2 by 91%, PM10 by 5% and carbon dioxide emissions by 46% versus total reliance on new central generation. We find that markets have largely chosen central generation due to outmoded laws and regulations that are effectively unintentional barriers to efficiency.