Some determinants of allowed rates of return on equity to electric utilities

Journal Article · · Bell J. Econ.; (United States)

DOI:https://doi.org/10.2307/3003611· OSTI ID:6945449

Hagerman, R L; Ratchford, B T

A variance components model is used to examine the economic and political variables that may affect the allowable rate of return on equity for electric utilities. The evidence indicates that both the risk and the size of the firm are positively related to the allowed return on equity. The use of book value in determining the rate base and the term of the commissioners were also positively related to the allowed return. The compensation of the commissioners and whether they were elected or appointed to office were not related. 16 references.

• Research Organization: State Univ. of New York, Buffalo
• OSTI ID: 6945449
• Journal Information: Bell J. Econ.; (United States), Journal Name: Bell J. Econ.; (United States) Vol. 9:1; ISSN BJECD
• 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
CHARGES
ECONOMETRICS
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC UTILITIES
ENERGY MODELS
INCOME
LOCAL GOVERNMENT
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS
RISK ASSESSMENT
SOCIO-ECONOMIC FACTORS