Regulatory Risk And the Cost of Capital: Determinants And Implications for Rate Regulation (Google eBook)

Burkhard Pedell

Birkhäuser, 2006 - 221 pages

Austrian Controller Award 2005This book develops a comprehensive concept of regulatory risk integrating existing theoretical and empirical research. The focus is on explaining how the design of the regulatory system influences the risk of a rate-regulated firm, as well as on elaborating appropriate methods for the determination of the regulatory rate base and the allowed rate of return. Regarding the regulatory rate base, the question of whether market value of capital or book value of assets should be employed and the choice of the depreciation scheme are at the center of the discussion. Specific methodical issues concerning cost of capital assessment for rate-regulated firms are analyzed, i.e. the circularity of rate regulation, the sharing of risks between capital owners and rate payers, the length of the regulatory review period, the regulation of the capital structure as well as the conversion of a post-tax to pre-tax weighted average cost of capital.

Contents

• IV: 1
• V: 9
• VI: 10
• VII: 11
• VIII: 14
• IX: 16
• X: 18
• XI: 19
• XII: 21
• XIII: 23
• XV: 27
• XVI: 32
• XVII: 34
• XVIII: 35
• XIX: 40
• XX: 44
• XXI: 45
• XXIII: 55
• XXIV: 57
• XXV: 60
• XXVI: 63
• XXVII: 65
• XXVIII: 72
• XXX: 74
• XXXI: 77
• XXXII: 98
• XXXIII: 99
• XXXIV: 100
• XXXV: 105
• XXXVI: 111
• XXXVII: 114
• XXXVIII: 119
• XXXIX: 120
• XL: 121
• XLI: 141
• XLII: 142
• XLIII: 143
• XLIV: 144
• XLV: 150
• XLVI: 151
• XLVII: 152
• XLVIII: 154
• L: 157
• LI: 163
• LII: 165
• LIII: 167
• LIV: 169
• LV: 170
• LVI: 173
• LVII: 177
• LVIII: 181
• LIX: 183
• LX: 185
• LXI: 186
• LXII: 188
• LXIII: 189
• LXIV: 193
• LXV: 199
• LXVI: 219

Popular passages

Page 161 - The heart of the matter is that rates cannot be made to depend upon "fair value" when the value of the going enterprise depends on earnings under whatever rates may be anticipated.‎

Page 207 - Some Determinants of Allowed Rates of Return on Equity to Electric Utilities.‎

Page 216 - The Regulatory Factor and Electric Utility Common Stock Investment Values" (PUBLIC UTILITIES FORTNIGHTLY, November 22, 1979).‎

Page 210 - On the CAPM Approach to the Estimation of a Public Utility's Cost of Equity Capital.‎

Page 205 - Optimal Investment and Financing Patterns for a Firm Subject to Regulation with a Lag.‎

Page 205 - Nos. 01-338, 96-98, 98-147, Report and Order and Order on Remand and Further Notice of Proposed Rulemaking, 18 FCC Red 17265-74, 17277, paras. 466^*71, 476 (2003) (Triennial Review Order), corrected by Errata, 18 FCC Red 19020 (2003), off" d in part, vacated and remanded in part, United States Telecom Ass'n v.‎

Page 200 - Die geplante Reform der Unternehmensbesteuerung - Einfluss auf die Berechnung und die Höhe des Werts von Unternehmen, in: FB, 2.‎

Page 205 - Valuation, Optimal Investment and Financing for the Firm Subject to Regulation," Journal of Finance (May 1975).‎

Bibliographic information

• Title: Regulatory Risk And the Cost of Capital: Determinants And Implications for Rate Regulation
• Author: Burkhard Pedell
• Edition: illustrated
• Publisher: Birkhäuser, 2006
• ISBN: 3540308016, 9783540308010
• Length: 221 pages
• Subjects: Business & Economics / Accounting / Financial; Business & Economics / Accounting / General; Business & Economics / Accounting / Managerial; Business & Economics / Corporate Finance; Business & Economics / Economics / General; Business & Economics / Finance; Business & Economics / Industries / General; Business & Economics / Organizational Behavior; Capital costs; Risk management