The Federal Power Commission Economic Assessment And Legal Reform

Cover The Federal Power Commission Economic Assessment And Legal Reform
The Federal Power Commission Economic Assessment And Legal Reform
Paul W Macavoy
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Pleting these surveys than do unregulated companies; nor have the regulated companies ever justified these surveys as cost effective because they have turned up "lost" capital equipment. In 1968, the F. P. C. 's own cost of electric pov/er industry systems evaluation were $1. 3 million. A survey of a small sample of companies shov/s that they spend at least $5, 000 per annum on these activities. On average, approximately 40 documentation and 75 classification reviews of facilities have been com...pleted This is a sample average for 30 firms showing "regulatory expense" on Form 1 of the electric power company reports to the Federal Power Commission. These firms did not have under v;ay other proceedings mentioned above, or did not report costs re- lated to system reviews.
20 each year, so that the administrative costs of the electricity surveillance program must have been close to $1. 9 million per 12 year.
This review of the administrative costs of regulating the power industry shows that approximately half the costs have been attributable to price control activities and the other half to attempts to improve the quality of service.


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