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Design considerations for multiyear Public Utility rate plans

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  • Costello, Kenneth W.

Abstract

Regulatory experts generally agree that good regulation leads to high economic efficiency, fairness, and moderate regulatory costs. These three features have characterized good regulation going back to the beginning of the previous century. This paper will try to show that wellstructured and executed multiyear rate plans (MRPs) can be more compatible with the public interest, compared with the traditional rate-of return approach to setting utility rates. Substandard MRPs, however, can produce worse outcomes for utility customers.

Suggested Citation

  • Costello, Kenneth W., 2019. "Design considerations for multiyear Public Utility rate plans," Utilities Policy, Elsevier, vol. 59(C), pages 1-1.
    • Handle: RePEc:eee:juipol:v:59:y:2019:i:c:10
    DOI: 10.1016/j.jup.2019.05.009
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    References listed on IDEAS

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    1. Paul L. Joskow, 2014. "Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 291-344, National Bureau of Economic Research, Inc.
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    7. Lyon, Thomas P, 1996. "A Model of Sliding-Scale Regulation," Journal of Regulatory Economics, Springer, vol. 9(3), pages 227-247, May.
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    Cited by:

    1. Havyatt, David, 2022. "Toward consumer-centric energy network regulation: Australia's experience," Utilities Policy, Elsevier, vol. 78(C).

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