US Department of Commerce

December 12, 2016

How do different regulatory models affect the manner in which a utility conducts its business? On December 12, 2016, PURC Director of Energy Studies Ted Kury participated in a workshop conducted by the US Department of Commerce for its staff working with electric utilities in US embassies across the globe. The subject of his talk was the different regulatory structures and industry models employed in electricity regulation, as well as the strategic considerations of each. Participants gained greater insight into the challenges that might be faced by a utility under rate of return regulation, for example, that might not be faced by a utility under a price cap. Or the challenges faced by a generator in a vertically integrated system as opposed to a transparent wholesale market. Overall, the staff gained a greater appreciation of the challenges faced by utilities and regulators, regardless of regulatory and market structure.


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