Session Three: Financial and Regulatory Implications
Should Disruptive Technologies be included in Rate Base?
Five Key Questions:
- Do new natural monopolies result?
- Are costs the same for similar customers?
- Are there market failures?
- Are there principal-agent problems?
- Is there a lack of incentive to be operationally efficient?
If the answer to these questions is “No” – rate regulation probably not optimal business model.
