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Utilities – We all Un-Bundle

By Energy Rant One Comment
Our theme the last few weeks has covered technological change, consumer emotions, and irrational ways of thinking. The regulated monopoly and its cost-of-service model will not last forever. Someday it will be replaced. What might that look like? Right after last week’s post, From Crazy to Rational went up, I read Why Electric Utilities Should Replace Electric Rate Base in Fortnightly. Wow. How fortuitous! Cost-of-Service The cost-of-service model (COS) described in last week’s post, and verified by the Fortnightly article, motivates utilities to provide slightly more business efficiency than government. The COS model sets revenue requirements for utilities by capitalizing…
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