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- W132327013 abstract "US electric utilities face fewer incentives for efficient performance than nonregulated firms that operate in competitive markets, so regulators have traditionally relied on regulatory lag and a scrutiny of costs and management procedures. Characterizing the incentive programs which have been implemented by many state regulatory commissions as misguided, the author identifies an alternative adjustment mechanism with a potential for more effective promotion of utility performance improvements. The automatic rate adjustment mechanism (ARAM) links adjustments to cost elements recovered in a utility's rates to changes in external cost indexes for those cost elements. Ratepayers and utility shareholders would be better served by a regulatory scheme that relies on market forces, not shadow managements, to ensure efficient performance." @default.
- W132327013 created "2016-06-24" @default.
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- W132327013 date "1985-01-10" @default.
- W132327013 modified "2023-09-24" @default.
- W132327013 title "Can incentive regulation improve utility performance. The inherent danger of a simple answer" @default.
- W132327013 hasPublicationYear "1985" @default.
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