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I used to work for a utility company and there was a huge aversion to any innovation that drove costs down. Guaranteed ROI is incredibly counter-productive as a
by lxmorj 10y ago
I used to work for a utility company and there was a huge aversion to any innovation that drove costs down. Guaranteed ROI is incredibly counter-productive as a regulatory measure.
- RA_Fisher 10y agoGotta keep that cost basis high to apply the ROR against! Build a big nuclear reactor paid for by the rate-payers pass go and collect 8-10% ROR!
- smallnamespace 10y agoThere's actually little incentive to do this because increasing the cost basis usually costs more investor dollars.
- RA_Fisher 10y agoNot if they get pre-approval in a rate case. Well and like the OP mentions it's often done by overlooking efficiency gains.