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U.S. Department of Energy
Office of Scientific and Technical Information

Impact of the automatic fuel adjustment clause on production efficiency for electric utilities

Thesis/Dissertation ·
OSTI ID:6027632
The opening chapter contains an introduction to this regulatory tool. A brief history of the implementation of the automatic fuel adjustment clause, as well as a discussion of its costs and benefits to society, is contained therein. Both theoretical and empirical evidence on the relationship between the presence of an automatic fuel clause and firm performance are reviewed. A simple theoretical analysis of the impact of the automatic fuel adjustment clause on firm behavior is presented. An empirical analysis of the impact of the automatic fuel adjustment clause on cost efficiency is included. Cost frontiers are estimated for firms subject to automatic fuel adjustment clauses as well as for firms not subject to this form of regulation. Efficiency measures are computed and compared. A brief outline of the study's contributions are included. Suggested areas for further research are also discussed.
OSTI ID:
6027632
Country of Publication:
United States
Language:
English