The back-to-basics trend positioned utilities and other energy companies to lead the way out of Wall Street’s mess. Despite a perfect storm of rising costs and a weakening economy, utilities and...
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.
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