The electronic business situation，in 2011，has deteriorated caused by the the coal market operation and the industrial policy. As the national economical performance is stabilizing，the overall energy supply and demand maintain a basic balance and the consumer price index（CPI）dropped gradually，making it a a better opportunity to reform the power system. This paper reviews China’s power industry operation in 2011，and gives readers an insight into the coal-electricity price mechanism，The paper also looks forward to the future of China’s electricity reform.