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Rate-of-return regulation (also cost-based regulation) is a system for setting the prices charged by government-regulated monopolies, such as public utilities.It attempts to set prices at efficient (non-monopolistic, competitive) levels [1] equal to the efficient costs of production, plus a government-permitted rate of return on capital.
The setting of price controls in the form of price-cap regulation or rate-of-return regulation, especially for natural monopolies. Where there is non-compliance, this can result in: Financial penalties; or; A de-licensing process through which an organization or person, if judged to be operating unsafely, is ordered to stop or suffer a penalty.
High gas prices hit the state’s low- and middle-income households, and rural households, the hardest. They are driven up by taxes and environmental programs like LCFS and cap-and-trade.
The National Energy Act included the Natural Gas Policy Act of 1978, which reduced the scope of federal price regulation, to bring greater competition to both the natural gas and electric industry. In 1989, Congress ended federal regulation of wellhead natural gas prices, with the passage of the Natural Gas Wellhead Decontrol Act of 1989. [13]
They expected services and raw material prices to increase 5.3%, and forecast their labor and benefit costs rising 3.5%. Profit margins, which fell slightly in the second and third quarters were ...
U.S. stocks fell Friday as investor sentiment turned gloomy. The Dow Jones Industrial Average closed more than 300 points lower, while the Nasdaq Composite Index, which contains more technology ...
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