The Theory of Regulatory Risk

Part of the Topics in Regulatory Economics and Policy Series book series (TREP, volume 14)


High costs for new electric power plants have led to a series of regulatory and legislative decisions that may retroactively rewrite the rules that utility investors relied upon when they supplied capital for these projects. In Duquesne Light Co. v. Barasch, 109 S.Ct. 609 (1989), a case involving the recovery of capital invested in constructing nuclear power plants that were ultimately never completed, the Supreme Court upheld one such change.


Rate Base Risk Premium Moral Hazard Economic Principle Regulatory Risk 
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Copyright information

© Springer Science+Business Media New York 1993

Authors and Affiliations

  1. 1.The Brattle GroupUSA
  2. 2.Sloan School of ManagementMassachusetts Institute of Technology and The Brattle GroupUSA

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