Download or read book Incentives to Improve Electric Utility Performance written by Leland L. Johnson and published by . This book was released on 1985 with total page 118 pages. Available in PDF, EPUB and Kindle. Book excerpt: This report uses material from a recent Arizona Public Service Company rate case, and published literature, to address several issues generic to the electric utility industry: the effects on utility incentives and on rates to customers of including "construction work in progress" (CWIP) in the rate base; the use of prudence tests by regulators to determine what costs should, and which should not, be passed on to ratepayers; and the use of incentive programs, with explicit rewards and penalties, to reduce the construction costs of large power plants and to improve their operating performance after they go into service. It draws three major conclusions: (1) Economic principles do not support the notion that cost recovery from ratepayers should begin only after a plant is used and useful. (2) Traditional accounting practices produce rate shocks that force prices upward at the very time that the costs of using a plant are declining. Putting CWIP in the rate base is one of the ways rate shocks can be reduced. (3) Although including CWIP in the rate base may generate perverse incentives, the exclusion of CWIP from the rate base can also generate perverse incentives for utilities faced with severe cash flow problems.
Download or read book Regulating Utilities with Management Incentives written by Kurt A. Strasser and published by Praeger. This book was released on 1989-12-11 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book proposes a new approach to the government regulation of utilities. Arguing that traditional command-and-control regulation does not encourage efficient performance, Strasser and Kohler advocate the use of an incentive-based regulatory system and offer a practical, realistic strategy for the successful implementation of such plans within the context of utility regulation. The analysis is supported by a comprehensive survey of the relevant legal materials, an overview of the literature on organization theory and institutional economics, and a survey of the latest thinking on how incentives can most effectively be paid. Strasser and Kohler begin by identifying problems associated with current regulatory techniques, demonstrating that disincentives are often built into the regulatory system. When that system has tried incentives, the authors show they have been applied in an ad hoc manner, further exacerbating the problem. In presenting the case for incentive-based regulation, the authors review the history of comprehensive incentive plans, look at what organization theory can teach us about using incentives as a regulatory strategy, and explore the effective use of incentive compensation by nonregulated companies. Strasser and Kohler then develop a strategy for implementing incentive plans in regulated utilities, showing that, in order to work, the plans must include the installation of clearly defined bonuses and penalties, specific standards of performance, the payment of bonuses to managers rather than shareholders, and reliable and complete measures of company performance. Policymakers, economists, public utility regulators, and attorneys involved in the complex arena of utility regulation will find Regulating Utilities with Management Incentives indispensable reading.
Download or read book Incentive Regulations for Improving Electric Utility Performance a Survey of State Programs written by Frank C. Roberts and published by . This book was released on 1985 with total page 262 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Incentive Regulation in the Electric Utility Industry written by and published by . This book was released on 1983 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Incentive Design Varies by Industry written by James Reda and published by . This book was released on 2014 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article provides an analysis of how incentives are being structured to connect pay and performance at electric utility companies. Within the largest 200 US public companies, there are 16 electric utility companies (“EUC-16”). We are looking at the EUC-16 as a separate group from the remaining 184 companies (“Top-184”). We have reviewed the incentive compensation programs, both short-term (“STI”) and long-term (“LTI”) in place for both the EUC-16 and Top-184, and have examined the differences in performance metrics governing these programs and the prevalence of long-term incentive vehicles among both groups.
Download or read book Opportunities and Incentives for Electric Utility Load Management written by Gordian Associates and published by . This book was released on 1975 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Primer on Incentive Regulation for Electric Utilities written by and published by . This book was released on 2001 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In contemplating a regulatory approach, the challenge for regulators is to develop a model that provides incentives for utilities to engage in socially desirable behavior. In this primer, we provide guidance on this process by discussing (1) various models of economic regulation, (2) problems implementing these models, and (3) the types of incentives that various models of regulation provide electric utilities. We address five regulatory models in depth. They include cost-of-service regulation in which prudently incurred costs are reflected dollar-for-dollar in rates and four performance-based models: (1) price-cap regulation, in which ceilings are placed on the average price that a utility can charge its customers; (2) revenue-cap regulation, in which a ceiling is placed on revenues; (3) rate-of-return bandwidth regulation, in which a utility's rates are adjusted if earnings fall outside a[open-quotes]band[close-quotes] around equity returns; and (4) targeted incentives, in which a utility is given incentives to improve specific components of its operations. The primary difference between cost-of-service and performance-based approaches is the latter sever the tie between costs and prices. A sixth, [open-quotes]mixed approach[close-quotes] combines two or more of the five basic ones. In the recent past, a common mixed approach has been to combine targeted incentives with cost-of-service regulation. A common example is utilities that are subject to cost-of-service regulation are given added incentives to increase the efficiency of troubled electric-generating units.
Download or read book Innovative Regulatory Incentives for Improving Power Plant Planning and Performance written by and published by . This book was released on 1983 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Power of Change written by National Academies of Sciences, Engineering, and Medicine and published by National Academies Press. This book was released on 2016-09-30 with total page 341 pages. Available in PDF, EPUB and Kindle. Book excerpt: Electricity, supplied reliably and affordably, is foundational to the U.S. economy and is utterly indispensable to modern society. However, emissions resulting from many forms of electricity generation create environmental risks that could have significant negative economic, security, and human health consequences. Large-scale installation of cleaner power generation has been generally hampered because greener technologies are more expensive than the technologies that currently produce most of our power. Rather than trade affordability and reliability for low emissions, is there a way to balance all three? The Power of Change: Innovation for Development and Deployment of Increasingly Clean Energy Technologies considers how to speed up innovations that would dramatically improve the performance and lower the cost of currently available technologies while also developing new advanced cleaner energy technologies. According to this report, there is an opportunity for the United States to continue to lead in the pursuit of increasingly clean, more efficient electricity through innovation in advanced technologies. The Power of Change: Innovation for Development and Deployment of Increasingly Clean Energy Technologies makes the case that America's advantagesâ€"world-class universities and national laboratories, a vibrant private sector, and innovative states, cities, and regions that are free to experiment with a variety of public policy approachesâ€"position the United States to create and lead a new clean energy revolution. This study focuses on five paths to accelerate the market adoption of increasing clean energy and efficiency technologies: (1) expanding the portfolio of cleaner energy technology options; (2) leveraging the advantages of energy efficiency; (3) facilitating the development of increasing clean technologies, including renewables, nuclear, and cleaner fossil; (4) improving the existing technologies, systems, and infrastructure; and (5) leveling the playing field for cleaner energy technologies. The Power of Change: Innovation for Development and Deployment of Increasingly Clean Energy Technologies is a call for leadership to transform the United States energy sector in order to both mitigate the risks of greenhouse gas and other pollutants and to spur future economic growth. This study's focus on science, technology, and economic policy makes it a valuable resource to guide support that produces innovation to meet energy challenges now and for the future.
Download or read book The Electric Utility Industry written by Dennis Vincent Dyckman and published by . This book was released on 1986 with total page 94 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Performance based Ratemaking for Electric Utilities written by and published by . This book was released on 1995 with total page 106 pages. Available in PDF, EPUB and Kindle. Book excerpt: Performance-Based Ratemaking (PBR) is a form of utility regulation that strengthens the financial incentives to lower rates, lower costs, or improve nonprice performance relative traditional regulation, which the authors call cost-of-service, rate-of-return (COS/ROR) regulation. Although the electric utility industry has considerable experience with incentive mechanisms that target specific areas of performance, implementation of mechanisms that cover a comprehensive set of utility costs or services is relatively rare. In recent years, interest in PBR has increased as a result of growing dissatisfaction with COS/ROR and as a result of economic and technological trends that are leading to more competition in certain segments of the electricity industry. In addition, incentive regulation has been used with some success in other public utility industries, most notably telecommunications in the US and telecommunications, energy, and water in the United Kingdom. In this report, the authors analyze comprehensive PBR mechanisms for electric utilities in four ways: (1) they describe different types of PBR mechanisms, (2) they review a sample of actual PBR plans, (3) they consider the interaction of PBR and utility-funded energy efficiency programs, and (4) they examine how PBR interacts with electric utility resource planning and industry restructuring. The report should be of interest to technical staff of utilities and regulatory commissions that are actively considering or designing PBR mechanisms. 16 figs., 17 tabs.
Download or read book Electric Power Facility Construction Incentives written by and published by . This book was released on 1975 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Beyond Carrots for Utilities written by Seth Nowak and published by . This book was released on 2015 with total page 91 pages. Available in PDF, EPUB and Kindle. Book excerpt: "This report is one in a three-part ACEEE series on utility business models for energy efficiency. The two others examine state experience with lost revenue adjustment mechanisms and present an overall analysis of the utility business model framework. Utility incentive policies are ripe for examination as the regulation of the natural gas and electric utility industry undergoes major shifts and as more states adopt efficiency performance incentives. This study finds that states are increasingly adopting mechanisms to incentivize the cost-effective achievement of energy savings targets and encourage more comprehensive, longer-term performance criteria beyond saving energy"--Publisher's description.
Download or read book Regulatory Incentives for Demand side Management written by Steven Nadel and published by . This book was released on 1992 with total page 320 pages. Available in PDF, EPUB and Kindle. Book excerpt: The current regulatory system often serves to financially reward utilities that sell more electricity and penalise those that sell less, thus discouraging energy efficiency. To address the problem, a variety of reforms have been proposed and implemented to make the least-cost plan for meeting future electricty needs the most-profit plan for the utility. This book brings together contributions by over 20 experts who are currently shaping regulatory incentives across the US. These experts analyze: leading incentive mechanisms; rationales for regulatory incentives; how incentives evolved; linkages to programme evaluation; impacts of incentives on utilities; and the future direction of incentives.
Download or read book Incentive Regulation for Public Utilities written by Michael A. Crew and published by Springer Science & Business Media. This book was released on 2012-12-06 with total page 222 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book is based on two seminars held at Rutgers on October 22, 1993, and May 6, 1994 entitled `Incentive Regulation for Public Utilities'. These contributions by leading scholars and practitioners represent some of the best new research in public utility economics and include topics such as the theory of incentive regulation, dynamic pricing, transfer pricing, issues in law and economics, pricing priority service, and energy utility resource planning.
Download or read book Toward an Incentive Regulation Program written by Casey D. Whelan and published by . This book was released on 1985 with total page 220 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Final Report written by William Pollard and published by . This book was released on 1981 with total page 104 pages. Available in PDF, EPUB and Kindle. Book excerpt:
