Utility planning using least-cost principles and the role of externalities - staff report on a Keystone policy dialogue

摘要

The intent of this report is to assist policy-makers faced with decisions about changes to traditional utility regulation and planning. In traditional utility regulation practices, capital investments are rewarded and revenue is a direct function of sales. However, a number state public utility commissions have altered their practices to allow for returns on investments in more efficient end-use equipment (also known as ratebasing conservation) and adjusting revenues to account for sales lost due to utility conservation programs.