Fortnightly Magazine - May 2009

Inclining for the Climate

GHG reduction via residential electricity ratemaking.

Energy efficiency holds the key to meeting lofty greenhouse-gas (GHG) reduction goals. Rate design can help—specifically residential inclining block rates should be considered as part of the industry’s efforts to comply with forthcoming GHG targets.

Dealing with Asymmetric Risk

Improving performance through graduated conditional ROE incentives.

Unlike the majority of performance-based regulation plans, alternative design paradigms require less data, by instead allowing firms to reveal performance potential. In an asymmetric environment, regulators don’t have needed information, but that can be overcome with better models and incentives.

The Safety Vote

A prerequisite for sustained nuclear renaissance.

The nuclear renaissance requires safety as its central focus. Industry vigilance at all levels is key to accident prevention, but only favorable public opinion will allow the industry to realize its enormous potential.

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