A Historical Perspective on Electric Utility Regulation
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چکیده
The traditional approach to regulating electric utilities, involving exclusive geographic franchises and state commission approval of rate changes and capacity additions, is increasingly coming under pressure brought about by several important economic forces. From the inception of regulation until the late 1960s, economic forces enhanced the workability of traditional regulation and created an age during which rate-of-return regulation worked smoothly. As a result of demandside, technological and cost changes beginning in the late 1970s, however, the traditional framework was dealt several serious blows. That resulted in a reexamination of both the origins of that regulation and its underlying economic justification. In particular, the "natural monopoly" argument behind extensive price and entry regulation is undergoing reassessment.
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تاریخ انتشار 2008