This note re-estimates our model of the determinants and impacts of cost component incentive regulation using an improved data set which avoids double-counting firm observations. It also tests alternative specifications of the relationships. While cost component incentive regulation improves...

This empirical study examines the determinants and impacts of incentive regulations introduced by utility commissions in the late 1970s and early 1980s. Rewards for generating plant utilization and low heat rates were found to have been introduced in states whose firms exhibited relatively high...