Alternative Regulation for the Electric Industry Seminar for the Kansas Corporation Commission
Is the U.S. system for regulating electricity broken? Maybe. But if regulators wait until it is clear that the system is broken before making changes, they will be too late. This was the underlying theme for PURC Director Mark Jamison’s seminar to the Kansas Corporation Commission, Dr. Jamison explained that multiple forces are driving unprecedented change in the sector, leading people to question the current industry and regulatory models. He compared several alternative methods of regulation for their impacts on three imperatives, namely improved cash flow, improved efficiency incentives, and adaptability to future industry changes. He concluded that most alternative methods focus on improving cash flow, but would improve efficiency or adaptability only under certain conditions. He explained that regulators should experiment with alternative mechanisms and learn from each other. His seminar, “Alternative Regulation for the Electricity Industry,” was presented on May 30, 2013.