Investor-owned utilities (IOUs)serving multiple states are subject to multiple publicservice (utility) commission (PSC) regulation. Focusing on relative rates of an IOU across PSCsisolates regulatory effects. This analysis examines38 such multistate IOUs from 1995. For theresidential-commercial customer comparison, electedPSC commissioners, Republican-appointed commissioners,PSC jurisdiction over municipally-owned utilities (anindirect IOU competitor), and IOU home-state statusare associated with a higher relative rate, whereasmore PSC employees per capita and population densityare associated with a lower relative rate. Thecommercial-industrial comparison results are largelyreversed, but are similarly robust.
Review of Industrial Organization – Springer Journals
Published: Oct 3, 2004
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