Utility prudency issues

Conference · Wed Jan 01 04:00:00 EST 1986 · Trans. Am. Nucl. Soc.; (United States)

OSTI ID:7179471

Charnoff, G

The conventional legal standard of prudence found in the common law of public utility regulation precludes a judgment about past decisions based on present knowledge of whether the decisions proved in time to have been right or wrong. The proper inquiry is not whether every management decision proved to be correct. Rather, the proper inquiry as stated by the New York Public Service Commission in Re Consolidated Edison Co. of New York, Inc. is ...whether the company's conduct was reasonable at the time, under all of the circumstances, considering that the company had to solve its problems prospectively.... The exercise of prudence does not guarantee performance on schedule or within budget, or the making of correct decisions, when judged after the fact. But it does require or involve the exercise of reasoned decision making within a framework of reasonably available alternatives.

• OSTI ID: 7179471
• Report Number(s): CONF-861102-
• Conference Information: Journal Name: Trans. Am. Nucl. Soc.; (United States) Journal Volume: 53
• Country of Publication: United States
• Language: English

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