What type of incentive regulation do the following examples demonstrate? a)The regulator sets the price of the natural gas utility based on the average natural gas prices in the neighboring 3 towns b)The regulator has set the maximum price per kWh for 2021 at $90 c)ln New York, Earnings Adjustment Mechanisms reward utilities for expanding energy efficiency

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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1.

What type of incentive regulation do the following
examples demonstrate?
a)The regulator sets the price of the natural gas
utility based on the average natural gas prices in
the neighboring 3 towns
b)The regulator has set the maximum price per
kWh for 2021 at $90
c)ln New York, Earnings Adjustment Mechanisms
reward utilities for expanding energy efficiency
Transcribed Image Text:What type of incentive regulation do the following examples demonstrate? a)The regulator sets the price of the natural gas utility based on the average natural gas prices in the neighboring 3 towns b)The regulator has set the maximum price per kWh for 2021 at $90 c)ln New York, Earnings Adjustment Mechanisms reward utilities for expanding energy efficiency
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