Ralph R. Mabey, trustee in the Chapter 11 bankruptcy proceedings of Cajun Electric Power Co-op., has entered into an amended asset-purchase agreement with Louisiana Generating LLC for the purchase...
u7dThe question of the refund of LOSSES presents an intriguing corollary for advocates of recovery. Suppose the utility has overcharged ratepayers inadvertently and without malice since 1980. Now, in 1996, the error is discovered. Should the utility refund the excess or is this situation simply a case of retroactive ratemaking? Or, suppose captive ratepayers have suffered LOSSES by being denied access to competitive markets. Should symmetry require a recovery of these opportunity cost LOSSES, in parallel with a refund of uneconomic costs. Steven Parsons, of INDETEC, suggested this idea to me when I presented some of the other ideas in this article at a conference: "Successful Strategies for Pricing Unbundled Services," Global Business Research, Ltd., Chicago, Aug. 8, 1996.
u8dOr fill in the blank with your favorite group of unintended beneficiaries.
u9dPublic power creates market and jurisdictional inconsistencies that would disappear with privatization.
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.