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Why Regulators Should Replace Electric Utility Rate Base

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May 2018
Charles Cicchetti
Public Utilities Fortnightly

Charles Cicchetti examines why regulators should change traditional rate-making regulation. More than sixty years ago, the United States adopted an approach to regulation known as cost-of-service (COS) regulation. The primary regulatory revenue determinant under COS is known as rate base, which is the original amount investor-owned utilities invested, less accumulated depreciation.

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