Ebook: A consumer's guide to the economics of electric utility ratemaking

This guide deals primarily with the economics of electric utilities, although certain legal and organizational aspects of utilities are discussed. Each of the seven chapters addresses a particular facet of public-utility ratemaking. Chapter One contains a discussion of the evolution of the public-utility concept, as well as the legal and economic justification for public utilities. The second chapter sets forth an analytical economic model which provides the basis for the next four chapters. These chapters contain a detailed examination of total operating costs, the rate base, the rate of return, and the rate structure. The final chapter discusses a number of current issues regarding electric utilities, mainly factors related to fuel-adjustment costs, advertising, taxes, construction work in progress, and lifeline rates. Some of the examples used in the Guide are from particular states, such as Illinois and California. These examples are used to illustrate specific points. Consumers in other states can generalize them to their states and not change the meaning or significance of the points. �Read more...