Year: 1986
Type: article
Abstract: Electric utility price regulation in the United States has historically entailed a state regulatory commission overseeing a utility's rate structure by setting an allowed rate of return for the utility on its invested capital. Although state commissions typically have the power to disallow recovery by a utility of imprudently incurred expenses, the current regulatory system was not designed to encourage utilities to control costs. In search of ways to promote efficiency in electricity production, a number of state regulatory commissions have turned their attention from retrospective second-guessing of utility management to "incentive regulation" approaches, which condition financial rewards or penalties upon some measure of a utility's performance.
Source: bepress Legal Repository
Authors: Paul L. Joskow, Richard Schmalensee
Institution: Yale University
Language: English
Topic: Energy Law and Policy
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W176889938