| Regulatory Choices A Perspective on Developments in Energy Policy |
| ACKNOWLEDGMENTS |
| ONE Introduction and Overview |
 | TWO Energy Utility Pricing and Customer Response The Recent Record in California |
| • | I. INTRODUCTION |
| • | II. PRICING UTILITY-SUPPLIED ENERGY: THE INSTITUTIONAL SETTING AND ECONOMIC CRITERIA |
| • | III. THE PRACTICE OF ENERGY UTILITY POLICY MAKING IN CALIFORNIA |
| • | IV. CONSUMER DEMAND FOR UTILITY-SUPPLIED ENERGY |
| V. REVENUE ALLOCATION |
| • | Optimal Uniform Pricing |
| • | Optimal Nonlinear Pricing |
| • | The Two-Part Tariff |
| VI. RATE DESIGN ISSUES WITHIN CUSTOMER CLASSES |
| • | Demand Charges |
| • | Time-of- Use Pricing |
| • | Choice of Reliability Level |
| • | VII. SUMMARY AND CONCLUSIONS |
| • | REFERENCES |
| THREE Issues in Public Utility Regulation |
| • | I. INTRODUCTION |
| • | II. CONCENTRATION OF POWER AND THE BENEFITS OF MERGERS |
| • | III. REGULATORY INCENTIVES AND DISINCENTIVES FOR INVESTMENT |
| IV. A PROPOSAL FOR REFORM |
| • | Long-Run Capacity Planning |
| • | Electric Power Tariff Structure |
| • | REFERENCES |
| FOUR The Value of Rate Reform in a Competitive Electric Power Market |
| • | I. INTRODUCTION |
| • | II. THE PROBLEM |
| III. MEASURING ECONOMIC GAINS FROM MORE EFFICIENT PRICING |
| • | Methodology |
| • | The Results: Gains From Marginal-Cost Pricing |
| • | Utility Cost Recovery Over Time |
| • | Subsidization |
| • | IV. A PROPOSAL FOR RATE REFORM |
| • | V. CONCLUSIONS |
| • | REFERENCES |
| FIVE Natural Gas Distribution in California Regulation, Strategy, and Market Structure |
| • | I. INTRODUCTION |
| II. THE NATIONAL MARKET |
| • | Historical Background |
| • | The Natural Gas Policy Act of 1978 |
| • | Recent Federal Regulatory Issues |
| • | Wellhead Deregulation |
| • | Pipeline Deregulation Issues |
| • | Take-or-Pay Issues |
| • | Future Federal Role in Natural Gas Regulation |
| • | California in the National Setting |
| III. NATURAL GAS IN THE STATE OF CALIFORNIA |
| • | California's Major Gas Distributors |
| • | The California Public Utilities Commission |
| • | Gas Utility Customer Classes |
| IV. THE VALUE-OF-SERVICE EXPERIENCE |
| • | Historical Background |
| • | Contemplating the Costs of Service |
| • | The New Direction of California Natural Gas Regulation |
| V. ARE DISTRIBUTION COSTS EXCESSIVE? |
| • | Background |
| • | Historical Trends |
| • | Wage Rates |
| VI. COPING WITH THE PRESSURE FOR CHANGE IN INDUSTRIAL MARKETS |
| • | The Rising Importance of Contract Carriage |
| • | Interstate Pipeline Proposals |
| • | VII. CONCLUSIONS AND RECOMMENDATIONS |
| • | REFERENCES |
| Appendix A: Methodology for Cross-subsidy Analysis |
| • | 2. THE ADJUSTMENT PROCESS |
| SIX Estimating Costs of Alternative Electric Power Sources for California |
| • | I. INTRODUCTION |
| • | II. THE CALIFORNIA ENERGY COMMISSION SUPPLY-DEMAND FORECAST |
| III. POTENTIAL IMPORTS FROM THE PACIFIC NORTHWEST AND SOUTHWEST |
| • | Pacific Northwest Imports |
| • | Southwest Imports |
| • | Summary |
| IV. ALTERNATIVE NEW CALIFORNIA IN-STATE ELECTRIC POWER SOURCES |
| • | Conservation |
| • | Advanced Coal Combustion and Coal-Derived Synthetics |
| • | Natural Gas to Gasoline |
| • | Oil Shale |
| • | Tar Sands |
| • | Alcohol |
| • | Wind |
| • | Energy Storage |
| • | Biomass |
| • | Geothermal |
| • | Nuclear and Conventional Coal Technologies |
| • | Oil and Gas |
| • | Nuclear Fusion |
| • | V. CONCLUSIONS |
| • | REFERENCES |
| SEVEN An Economic Evaluation of the Costs and Benefits of Diablo Canyon |
| • | I. INTRODUCTION |
| II. COSTS AND BENEFITS OF DIABLO IN 1985 |
| • | Calculating the Costs of Diablo Canyon |
| • | Comparison of Costs and Benefits |
| • | III. DIABLO CANYON VIEWED FROM 1978 |
| • | IV. THE ECONOMIC IMPACT OF SUNK COSTS |
| • | V. CONCLUSION |
| • | REFERENCES |
| EIGHT Residential Energy Conservation Standards, Subsidies, and Public Programs |
| • | I. INTRODUCTION |
| II. RESIDENTIAL WEATHERIZATION AND ALTERNATIVE ENERGY PROGRAMS |
| • | Direct Federal Subsidies |
| • | Government Tax Credits |
| • | Program Impacts |
| • | Evaluation |
| III. CONSERVATION PROGRAMS OF PUBLIC UTILITIES. |
| • | Solar Financing |
| • | Residential Conservation Audits |
| • | Weatherization Financing |
| • | Direct Weatherization |
| • | Conservation Hardware |
| • | Seasonal Pilot Light |
| • | Builder Conservation |
| • | Master Meter Conversions |
| • | Other Residential Conservation |
| IV. MANDATED STANDARDS FOR NEW CONSTRUCTION |
| • | Federal Policy |
| • | State Policy |
| • | Cost-Effectiveness of California Standards |
| • | V. EXPECTATIONS ABOUT ENERGY PRICE INCREASES |
| • | VI. CONCLUSIONS |
| • | REFERENCES |
| NINE Wind Power in California A Case Study of Targeted Tax Subsidies |
| • | I. INTRODUCTION |
| • | II. WIND TECHNOLOGY |
| III. GOVERNMENT POLICIES SUPPORTING THE DEVELOPMENT OF WIND ENERGY |
| • | Research and Development |
| • | Tax and Financial Assistance to Wind Generators |
| • | Public Utility Regulatory Policies Act |
| IV. THE EFFECT OF THE WIND ENERGY PROGRAMS ON CALIFORNIA |
| • | Installed Capacity |
| • | Technological Development |
| • | Financial Organizations of the Wind Industry |
| • | The Detailed Economics of Wind Projects |
| • | Optimal Timing of a Wind Program |
| • | V. CONCLUSIONS |
| • | REFERENCES |
| TEN Concluding Remarks on the Making of Public Policy |
| • | REFERENCES |
| INDEX |
| • | A |
| • | B |
| • | C |
| • | D |
| • | E |
| • | F |
| • | G |
| • | H |
| • | I |
| • | J |
| • | K |
| • | L |
| • | M |
| • | N |
| • | O |
| • | P |
| • | Q |
| • | R |
| • | S |
| • | T |
| • | U |
| • | V |
| • | W |
| • | X |
| • | Y |
| • | Z |
