Rate unbundling: Are we there yet?
Abstract
This article reviews the concept of unbundling the cost of capital in the electric utility industry. It makes the case that there should be separate rates of return for generation and transmission and distribution. It is demonstrated in this article that estimates of ROE using tradition models requires a series of complicated, data-intensive calculations. Since there are no truly comparable groups, the exercise becomes that much more problematic. The concept of finding pure-play comparables among utility services, even those in a holding company structure, seems unrealiastic as well. Until market-based solutions are available, simple proxies can be used.
- Authors:
- Publication Date:
- OSTI Identifier:
- 381236
- Resource Type:
- Journal Article
- Journal Name:
- Fortnightly
- Additional Journal Information:
- Journal Volume: 134; Journal Issue: 4; Other Information: PBD: 15 Feb 1996
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 24 POWER TRANSMISSION AND DISTRIBUTION; ELECTRIC POWER INDUSTRY; COMPETITION; DEREGULATION; POWER TRANSMISSION; COST; POWER GENERATION
Citation Formats
Morse, S S, Meal, M, and Lavinson, M. Rate unbundling: Are we there yet?. United States: N. p., 1996.
Web.
Morse, S S, Meal, M, & Lavinson, M. Rate unbundling: Are we there yet?. United States.
Morse, S S, Meal, M, and Lavinson, M. 1996.
"Rate unbundling: Are we there yet?". United States.
@article{osti_381236,
title = {Rate unbundling: Are we there yet?},
author = {Morse, S S and Meal, M and Lavinson, M},
abstractNote = {This article reviews the concept of unbundling the cost of capital in the electric utility industry. It makes the case that there should be separate rates of return for generation and transmission and distribution. It is demonstrated in this article that estimates of ROE using tradition models requires a series of complicated, data-intensive calculations. Since there are no truly comparable groups, the exercise becomes that much more problematic. The concept of finding pure-play comparables among utility services, even those in a holding company structure, seems unrealiastic as well. Until market-based solutions are available, simple proxies can be used.},
doi = {},
url = {https://www.osti.gov/biblio/381236},
journal = {Fortnightly},
number = 4,
volume = 134,
place = {United States},
year = {Thu Feb 15 00:00:00 EST 1996},
month = {Thu Feb 15 00:00:00 EST 1996}
}
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