An evaluation of incentive regulation for electric utilities

Sanford V. Berg, Jinook Jeong

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)


This empirical study examines the determinants and impacts of incentive regulations introduced by utility commissions in the late 1970s and early 1980s. Rewards for generating plant utilization and low heat rates were found to have been introduced in states whose firms exhibited relatively high managerial slack (or relatively higher costs). However, the empirical results did not find that the introduction of specific cost component incentives improved overall operating cost performance.

Original languageEnglish
Pages (from-to)45-55
Number of pages11
JournalJournal of Regulatory Economics
Issue number1
Publication statusPublished - 1991 Mar

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics


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