Prudence Review and Traditional Revenue Requirement Regulation: Some Thoughts

Document Type

Article

Journal/Book Title/Conference

The Electricity Journal

Volume

24

Issue

8

Publication Date

2011

First Page

88

Last Page

91

Abstract

Prudence review is an important regulatory tool and should be applied in an informed and reasonable manner to address and balance risk sharing between electric utility investors and utility ratepayers especially in this era of increasingly complex corporate restructurings. The proposed framework in this paper will hopefully add value to efforts in applying prudence review to a range of issues facing regulatory commissions.

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