Determination of regulatory rank: a revealed preference analysis

Book · Sat Jan 01 04:00:00 EST 1983

OSTI ID:5112707

Navarro, P

This study examines the statistical relationship between the regulatory climate rankings given to the public utility commissions (PUCs) and the eight major criteria which the major Wall Street firms claim are important determinants of regulatory rank. These criteria include the allowed rate of return, average regulatory lag, use of interim rates, whether a historic or future test year is used, whether construction work in progress (CWIP) is allowed in the rate base, whether normalization or flow-through is the accounting convention, specification of automatic adjustment clauses, and whether an original cost or fair value rate base is used. A logic analysis suggests that only two of the eight criteria are of statistical importance: regulatory climate rank improves with the allowed rate of return and the inclusion of CWIP in the rate base. Policy implications are noted. 14 references, 3 tables.

• OSTI ID: 5112707
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
296000 -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
CONSTRUCTION
COST RECOVERY
CWIP
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMICS
EVALUATION
PUBLIC UTILITIES
REGULATIONS