Streamlined Ratemaking: Recognizing Challenges for Consumers

descriptionPublicationkeyboard_double_arrow_right Article 01 Nov 2010 English Publisher:Elsevier BVJournal:The Electricity Journal, volume 23, pages 7-12 (issn: 1040-6190,

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Authors: Jeffry Pollock;

doi: 10.1016/j.tej.2010.09.014

Streamlined Ratemaking: Recognizing Challenges for Consumers

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Abstract

Streamlined ratemaking can be problematic if improper ratemaking practices are employed, consumers are forced to bear risks that have traditionally been born by utilities and their shareholders, and utilities are no longer strongly motivated to provide safe and reliable service at the lowest reasonable cost. Measures can be taken that help preserve the regulator's role as a surrogate for competition, thereby ensuring that rates are both just and reasonable.

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