The LDC of the Future | Remarks for Centre of Urban Energy

LDC of the future

Author: Karen Taylor

Date: June 2015

Session Three: Financial and Regulatory Implications

Should Disruptive Technologies be included in Rate Base?

Five Key Questions:

  1. Do new natural monopolies result?
  2. Are costs the same for similar customers?
  3. Are there market failures?
  4. Are there principal-agent problems?
  5. 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.