No clear consensus has emerged. Should regulators hold to a hard line?
Regulators have wrestled for decades with transactions between vertically integrated monopoly utilities and their...
or greater than the distribution company's fully allocated costs to provide such asset or service).
22 For example, in a 1999 Resolution of NARUC's Electricity Committee regarding cost-allocation guidelines for the energy industry, the committee recognized that while "generally, the price for services, products and the use of assets provided by a regulated entity to its non-regulated affiliates should be at the higher of fully allocated costs or prevailing market prices," such prices "could be based on incremental cost, or other pricing mechanisms" under "appropriate circumstances" as determined by regulators. See www.naruc.org/Resolutions/summer 99.htm.
23 The FCC's decision in CC Docket No. 96-98 was announced in a press release dated Sept. 15 (FCC Press Release). The reasoning that supports this decision is not yet known as the decision itself has not been released.
24 See FCC Press Release.
25 FCC Press Release.
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