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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: Ilaine who wrote (102045)5/14/2001 3:32:53 PM
From: yard_man  Read Replies (1) of 436258
 
rate of return regulation capped prices based on a ROR formula -- gave them more funds than they needed, but also provided a reliable supply, even if there was slight over-building. Large overbuilding was dealt with in some circumstances ... in each state it worked as well as the regulators were vigilante to deny imprudent costs -- don't laugh, but I think they functioned a little better on the "fat" side ... our state for instance. A second nuclear unit at Callaway would have been overkill -- it was killed ... and our state enjoys some of the lowest energy prices anywhere. Regulation really did work quite well ... perfect? no, but not a huge amount of fat such that prices were 10 - 20% higher than they would have been under some other system ...
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