Management audits in utility rate cases: a brief look at the law

Journal Article · Thu Dec 16 04:00:00 EST 1976 · Public Util. Fortn.; (United States)

OSTI ID:7325174

Littell, R; Gross, S J

Regulatory commissions passing on public utility rate requests have traditionally assumed that the utilities were being satisfactorily managed, absent evidence to the contrary. Of late, however, regulatory commissions are increasingly coming to the conclusion that rate relief sought by utilities should not be granted unless the record contains affirmative evidence of managerial efficiency. Moreover, commissions have now started to demand that such evidence be the product of detailed management audits. A shift in regulatory policy of this magnitude will inevitably generate a host of legal issues. This discussion attempts to look into the future concerning issues that may arise in connection with commission-ordered management audits. But before focusing on the future, a brief look is taken at the requirement of managerial efficiency in the regulation of utility rates, as traditionally viewed by the commissions and the courts. The authors conclude that management audits will inevitably spawn a host of controversies new to rate-making proceedings. Caution, careful planning, imagination, and a willingness to reexamine traditional viewpoints about the nature of rate-making proceedings will be needed. (MCW)

• OSTI ID: 7325174
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 98:13; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

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29 ENERGY PLANNING, POLICY, AND ECONOMY
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Legislation
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296000 -- Energy Planning & Policy-- Electric Power
ACCOUNTING
CHARGES
EFFICIENCY
ELECTRIC POWER
LAWS
LEGAL ASPECTS
MANAGEMENT
POWER
PUBLIC UTILITIES
REGULATIONS