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Regulatory lag currently

Journal Article · · Public Util. Fortn.; (United States)
OSTI ID:7100698
In this review of the current state of regulatory lag as experienced by most investor-owned public utilities, the author examines both the effects of this experience upon their financial performance and the more significant of the methods resorted to for reducing regulatory lag and for avoiding or alleviating its effects where it continues. Regulatory and legislative efforts lately (in the seventies) have dealt with these mechanisms: fuel cost adjustment clauses; cost-of-service indexing; use of the forward test-year concept; normalized accounting and construction work in progress in rate base; interim or emergency rate increases; and help from the courts. Regulatory lag here refers to the delays imposed, due to the legal requirements of regulatory proceedings, upon utility efforts to make rates and revenues track significant cost changes. The author concludes that ultimately the solution may depend on how well regulators, legislators, and consumers come to understand that eliminating regulatory lag is in the interest of the consumer as well as that of the utility. (MCW)
Research Organization:
Duke Power Co., Charlotte, NC
OSTI ID:
7100698
Journal Information:
Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 99:13; ISSN PUFNA
Country of Publication:
United States
Language:
English

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