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PBR Designs for Transcos: Toward a Comparative Framework

✍ Scribed by Steven Stoft; Frank Graves

Publisher
Elsevier Science
Year
2000
Tongue
English
Weight
501 KB
Volume
13
Category
Article
ISSN
1040-6190

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✦ Synopsis

Toward a Comparative Framework

No off-the-shelf performance-based regulation formula for transcos appears readily workable, either politically or administratively, yet neither is conventional cost-ofservice regulation sufficient. The most suitable compromise may be to apply cost of service, but make the transcos' allowed return on equity sensitive to a fraction of grid imperfection costs.

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