An evaluation of incentive regulation for electric utilities

Sanford V. Berg, Jinook Jeong

Research output: Contribution to journalArticle

15 Citations (Scopus)

Abstract

This empirical study examines the determinants and impacts of incentive regulations introduced by utility commissions in the late 1970s and early 1980s. Rewards for generating plant utilization and low heat rates were found to have been introduced in states whose firms exhibited relatively high managerial slack (or relatively higher costs). However, the empirical results did not find that the introduction of specific cost component incentives improved overall operating cost performance.

Original languageEnglish
Pages (from-to)45-55
Number of pages11
JournalJournal of Regulatory Economics
Volume3
Issue number1
DOIs
Publication statusPublished - 1991 Mar 1

Fingerprint

Evaluation
Incentive regulation
Costs
Electric utilities
Empirical study
Operating costs
Incentives
Empirical results
Reward

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Cite this

@article{bd4de5e5dbfe4ef9979b80d10f9e7348,
title = "An evaluation of incentive regulation for electric utilities",
abstract = "This empirical study examines the determinants and impacts of incentive regulations introduced by utility commissions in the late 1970s and early 1980s. Rewards for generating plant utilization and low heat rates were found to have been introduced in states whose firms exhibited relatively high managerial slack (or relatively higher costs). However, the empirical results did not find that the introduction of specific cost component incentives improved overall operating cost performance.",
author = "Berg, {Sanford V.} and Jinook Jeong",
year = "1991",
month = "3",
day = "1",
doi = "10.1007/BF00157610",
language = "English",
volume = "3",
pages = "45--55",
journal = "Journal of Regulatory Economics",
issn = "0922-680X",
publisher = "Springer Netherlands",
number = "1",

}

An evaluation of incentive regulation for electric utilities. / Berg, Sanford V.; Jeong, Jinook.

In: Journal of Regulatory Economics, Vol. 3, No. 1, 01.03.1991, p. 45-55.

Research output: Contribution to journalArticle

TY - JOUR

T1 - An evaluation of incentive regulation for electric utilities

AU - Berg, Sanford V.

AU - Jeong, Jinook

PY - 1991/3/1

Y1 - 1991/3/1

N2 - This empirical study examines the determinants and impacts of incentive regulations introduced by utility commissions in the late 1970s and early 1980s. Rewards for generating plant utilization and low heat rates were found to have been introduced in states whose firms exhibited relatively high managerial slack (or relatively higher costs). However, the empirical results did not find that the introduction of specific cost component incentives improved overall operating cost performance.

AB - This empirical study examines the determinants and impacts of incentive regulations introduced by utility commissions in the late 1970s and early 1980s. Rewards for generating plant utilization and low heat rates were found to have been introduced in states whose firms exhibited relatively high managerial slack (or relatively higher costs). However, the empirical results did not find that the introduction of specific cost component incentives improved overall operating cost performance.

UR - http://www.scopus.com/inward/record.url?scp=0003115274&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0003115274&partnerID=8YFLogxK

U2 - 10.1007/BF00157610

DO - 10.1007/BF00157610

M3 - Article

AN - SCOPUS:0003115274

VL - 3

SP - 45

EP - 55

JO - Journal of Regulatory Economics

JF - Journal of Regulatory Economics

SN - 0922-680X

IS - 1

ER -