Nergy Regulation: Cap and Trade and the effects on Energy Utility Rate Formula
This papers focus will be on Energy Regulation. Specifically, on Carbon Cap and Trade schemes and the effect it has on the energy utility rate formula.
R O + B (r)+ fuel
R: Total Revenue
B: Base rare
O: Operating expense
r: Overall rate of return
The paper will discuss and analyze the current california cap and trade system, its benefits and drawbacks.