Firm-specific productive efficiency offsets in the development of a price cap furmula

Ronald N. Norton; Thomas R. Sexton; Richard H. Silkam

doi:10.1016/S1040-6190(02)00398-6

Firm-specific productive efficiency offsets in the development of a price cap furmula

Ronald N. Norton
, Thomas R. Sexton
, Richard H. Silkam

Dean's Office, College of Business

University of Maine

Research output: Contribution to journal › Article › peer-review

10 Scopus citations

Abstract

Performance-based regulation represents an improvement over traditional rate-of-return regulation, but the price cap formulas that are employed often do not include firm-specific-as opposed to industry-wide-productivity or efficiency differentials and therefore do not include offsets related to the historical performance of the utility itself in the typical PCF. The authors show how to compute such offsets.

Original language	English
Pages (from-to)	43-52
Number of pages	10
Journal	Electricity Journal
Volume	15
Issue number	10
DOIs	https://doi.org/10.1016/S1040-6190(02)00398-6
State	Published - Dec 2002

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10.1016/S1040-6190(02)00398-6

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title = "Firm-specific productive efficiency offsets in the development of a price cap furmula",

abstract = "Performance-based regulation represents an improvement over traditional rate-of-return regulation, but the price cap formulas that are employed often do not include firm-specific-as opposed to industry-wide-productivity or efficiency differentials and therefore do not include offsets related to the historical performance of the utility itself in the typical PCF. The authors show how to compute such offsets.",

author = "Norton, \{Ronald N.\} and Sexton, \{Thomas R.\} and Silkam, \{Richard H.\}",

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AU - Sexton, Thomas R.

AU - Silkam, Richard H.

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N2 - Performance-based regulation represents an improvement over traditional rate-of-return regulation, but the price cap formulas that are employed often do not include firm-specific-as opposed to industry-wide-productivity or efficiency differentials and therefore do not include offsets related to the historical performance of the utility itself in the typical PCF. The authors show how to compute such offsets.

AB - Performance-based regulation represents an improvement over traditional rate-of-return regulation, but the price cap formulas that are employed often do not include firm-specific-as opposed to industry-wide-productivity or efficiency differentials and therefore do not include offsets related to the historical performance of the utility itself in the typical PCF. The authors show how to compute such offsets.

UR - https://www.scopus.com/pages/publications/0036899715

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DO - 10.1016/S1040-6190(02)00398-6

M3 - Article

AN - SCOPUS:0036899715

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VL - 15

SP - 43

EP - 52

JO - Electricity Journal

JF - Electricity Journal

IS - 10

ER -

Firm-specific productive efficiency offsets in the development of a price cap furmula

Abstract

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