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Regulatory Risk and the Cost of Capital

Determinants and Implications for Rate Regulation

Authors: Pedell, Burkhard

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  • ISBN 978-3-540-30802-7
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Hardcover $159.99
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  • ISBN 978-3-642-06806-5
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About this book

Austrian Controller Award 2005

This 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.

Table of contents (7 chapters)

Table of contents (7 chapters)
  • Introduction

    Pages 1-7

  • Basic Elements for a Comprehensive Concept of Regulatory Risk — Models, Objectives, Process, Cost Concepts and Types of Rate Regulation

    Pages 9-22

  • Impact of Rate Regulation on the Risk of a Regulated Firm

    Pages 23-53

  • Development of a Regulatory Control Panel — Analysis of Individual Variables of Rate Regulation as Determinants of Regulatory Risk

    Pages 55-117

  • Determination of the Regulatory Rate Base

    Pages 119-161

Buy this book

eBook $119.00
price for USA in USD (gross)
  • ISBN 978-3-540-30802-7
  • Digitally watermarked, DRM-free
  • Included format: PDF
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $159.99
price for USA in USD
  • ISBN 978-3-540-30801-0
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
Softcover $159.99
price for USA in USD
  • ISBN 978-3-642-06806-5
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Regulatory Risk and the Cost of Capital
Book Subtitle
Determinants and Implications for Rate Regulation
Authors
Copyright
2006
Publisher
Springer-Verlag Berlin Heidelberg
Copyright Holder
Springer-Verlag Berlin Heidelberg
eBook ISBN
978-3-540-30802-7
DOI
10.1007/3-540-30802-4
Hardcover ISBN
978-3-540-30801-0
Softcover ISBN
978-3-642-06806-5
Edition Number
1
Number of Pages
XI, 221
Topics