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- W1991323765 abstract "This article compares the time paths of allowed revenue to recover capital costs under two ratemaking methods, examines how these time paths are affected by changes in key economic parameters, and considers the economic significance of these differences. Using computer simulations, comparisons are made for a regulated firm that makes a one-time investment and for a firm having a growing investment base. For companies that will not make significant additional investment in the future, trended original cost ratemaking (TOC) provides a set of real rates that is more constant over time during periods of inflation. For companies experiencing growth in capacity, the real unit-tariff rate under TOC is more stable when inflation or growth rates change. The characteristics of TOC would tend to make the pricing of services produced by regulated firms more like pricing in the nonregulated sector, and it would distribute the burden of paying for regulated services more equally across generations of users. 3 references, 5 figures." @default.
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- W1991323765 date "1983-04-01" @default.
- W1991323765 modified "2023-09-26" @default.
- W1991323765 title "Notes - A Comparison of Original Costs and Trended Original Cost Ratemaking Methods" @default.
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- W1991323765 doi "https://doi.org/10.5547/issn0195-6574-ej-vol4-no2-11" @default.
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