Feeling of competition may raise utility efficiency
In an attempt to provide the Federal Energy Regulatory Commission (FERC) with a means of encouragement to regulated but non-competitive utilities to offer their customers the lowest possible rates, the Resources Consulting Group Inc. (RCG) devised an incentive regulation program that would award payments to those utilities that are able to reduce the level of and growth in rates. The program has the advantages of promoting the minimization of costs better than traditional regulation does; cost cuts are encouraged in consideration of both long- and short-term resource production and utilization; and ratepayers are able to achieve the greatest possible share of economic benefits associated with improved performance.
- OSTI ID:
- 5973566
- Journal Information:
- Electr. World; (United States), Vol. 197:5
- Country of Publication:
- United States
- Language:
- English
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