Many states have instituted some form of performance-based ratemaking (PBR) for utilities. In this all-new publication, Dr. Schmidt presents an exhaustive study of PBR, providing you not only with the policy aspects of the subject, but also with the mechanics of designing and implementing this important regulatory tool. Performance-Based Ratemaking provides the roadmap for prospering in the increasingly competitive retail energy markets. Discover the challenges and opportunities associated with PBR-- including the significant benefits for investors, regulators, and customers.
Discover the important differences between traditional rate regulations and the variations of PBR being implemented.
Learn from the regulatory mistakes of the past -- and the significant successes with PBR in the telecommunications industry.
Witness the potential effect of PBR on the value of an energy utility in this merger-mad market.
See how to get regulatory buy-in to the benefits of PBR and get an update on how commissions are ruling on this issue.
AVAILABILITY: This title usually ships within 1 to 2 weeks.
Scope of this Study
The Nature of the Supply of Electricity and Natural Gas
The Regulatory Process
A Regulatory Solution
A Competitive Solution
Historical Service at Cost Plans
Recent Service-at-Cost Plans
History has taught us well
III. PBR Design
Revenue Requirement Indexing versus Rate Indexing
The PBR Formula
The Escalation Factor
The Productivity Factor
The Stretch Factor
The Z Factor
Putting it all Together
IV. Regulatory Issues Associated with PBR
Rate Design Issues
Communications with Regulators
A Regulatory Vision of the Future
Lessons Learned from the Telephone Industry
Telephone PBR Experience in California
Telephone PBR Experience in other States
Electric and Natural Gas Utility Applications in California
Selected Electric and Natural Gas Utility Applications in Other States
FERC Order 2000
VI. International Applications of PBR
Europe Takes the Lean
VII. A New Direction in Performance-Based Ratemaking
A Framework for a New PBR
VIII. Financial Implications of PBR
The Cost of Equity Capital and the Impact of PBR
The Impact of PBR on a Utility's Bond Rating
Implications of PBR on Utility Valuation
A: SCE PBR Mid-Term Review: Customer Satisfaction Measurement Appendix
B: A Survey of Performance-Based Regulation of Electric Utilities in the United States Appendix
C: Letter to the Chief Executives of the PES Distribution Businesses Information and Incentives Project Subject Index