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Stipulations, the consumer advocate and utility regulation in Florida

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  • Littlechild, S.

Abstract

Relatively little is known about the practice of settlement rather than litigation in US utility regulation, or about the activities of consumer advocates. This paper presents evidence from Florida. During 1976-2002, over 30 per cent of earnings reviews were settled by stipulations involving the Office of Public Counsel but only 5 per cent of other cases. Over three quarters of the rate reductions associated with earnings reviews derived from these stipulations, and in the decade 1976-86 the proportion was over 95 per cent. The average value of a rate reduction was seven times higher with a stipulation than without. Only 1 per cent of the rate increases associated with company requests derived from stipulations. In these few cases the stipulation typically provided for a lower proportion of the requested rate increase than a litigated outcome allowed (about one third compared to one half). This research suggests that settlements deserve consideration in utility regulation generally, even outside the US context.

Suggested Citation

  • Littlechild, S., 2006. "Stipulations, the consumer advocate and utility regulation in Florida," Cambridge Working Papers in Economics 0635, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:0635
    Note: IO
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    File URL: http://www.electricitypolicy.org.uk/pubs/wp/eprg0615.pdf
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    References listed on IDEAS

    as
    1. Doucet, Joseph & Littlechild, Stephen, 2009. "Negotiated settlements and the National Energy Board in Canada," Energy Policy, Elsevier, vol. 37(11), pages 4633-4644, November.
    2. Stephen Littlechild, 2009. "Stipulated settlements, the consumer advocate and utility regulation in Florida," Journal of Regulatory Economics, Springer, vol. 35(1), pages 96-109, February.
    3. R. Blaine Roberts & G.S. Maddala & Gregory Enholm, 1978. "Determinants of the Requested Rate of Return and the Rate of Return Granted in a Formal Regulatory Process," Bell Journal of Economics, The RAND Corporation, vol. 9(2), pages 611-621, Autumn.
    4. Joseph Doucet & Stephen Littlechild, 2006. "Negotiated Settlements: The development of economic and legal thinking," Working Papers EPRG 0604, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    5. Zhongmin Wang, 2004. "Settling Utility Rate Cases: An Alternative Ratemaking Procedure," Journal of Regulatory Economics, Springer, vol. 26(2), pages 141-163, September.
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    1. Stephen Littlechild, 2009. "Stipulated settlements, the consumer advocate and utility regulation in Florida," Journal of Regulatory Economics, Springer, vol. 35(1), pages 96-109, February.
    2. Doucet, J. & Littlechild, S., 2006. "Negotiated Settlements: The development of economic and legal thinking," Cambridge Working Papers in Economics 0622, Faculty of Economics, University of Cambridge.
    3. Doucet, Joseph & Littlechild, Stephen, 2006. "Negotiated settlements: The development of legal and economic thinking," Utilities Policy, Elsevier, vol. 14(4), pages 266-277, December.
    4. Gert Brunekreeft, 2012. "On the Role of International Benchmarking of Electricity Transmission System Operators facing significant investment requirements," Bremen Energy Working Papers 0012, Bremen Energy Research.

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    More about this item

    Keywords

    stipulations; settlements; consumer advocate; regulation;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L97 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Utilities: General
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities

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