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How Should Regulators View Cost Trackers?

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  • Costello, Ken

Abstract

State commissions have not given adequate attention to the negative features of cost trackers, which are at odds with the public interest. Specifically, cost trackers diminish the positive effects of regulatory lag and retrospective reviews in deterring utility waste and cost inefficiency. Trackers also could reduce regulatory scrutiny in evaluating cost prudence.

Suggested Citation

  • Costello, Ken, 2009. "How Should Regulators View Cost Trackers?," The Electricity Journal, Elsevier, vol. 22(10), pages 20-33, December.
  • Handle: RePEc:eee:jelect:v:22:y:2009:i:10:p:20-33
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    Cited by:

    1. Kenneth W. Costello, 2023. "A Decision-Making Framework for Assessing New Rate Mechanisms: The Case of US Gas Distributors," Journal of Economic Analysis, Anser Press, vol. 2(3), pages 43-65, May.
    2. Costello, Kenneth W., 2019. "Design considerations for multiyear Public Utility rate plans," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.

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