The Effect of a Fuel Adjustment Clause on a Regulated Firm's Selection of Inputs

B-Tier
Journal: The Energy Journal
Year: 1985
Volume: 6
Issue: 2
Pages: 117-126

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

When input prices are changing rapidly, the delays inherent in rate-of-return regulation can result in rate decisions that are outdated before they can be implemented. Many regulatory commissions have adopted fuel adjustment clauses to remedy this problem. Fuel clauses adjust output price for changes in fuel costs so that the utility's profit remains relatively unaffected. Fuel adjustment clauses are now used in almost all the 50 states and the District of Columbia; a survey by the National Association of Regulatory Utility Commissioners (NARUC) (1978, p. 6) revealed that only 7 states did not permit fuel clauses.

Technical Details

RePEc Handle
repec:sae:enejou:v:6:y:1985:i:2:p:117-126
Journal Field
Energy
Author Count
1
Added to Database
2026-01-29