The author critically evaluates the effect of retroactive ratemaking on regulated public utilities, particularly the costs and disincentives inherent in the process. If the trend is not corrected, the author suggests that public utilities will ultimately become much like nationalized industries, with consumers bearing the risk and regulators managing the firm.
Louis De Alessi,
Private Ownership and Limits to Retroactive Regulation of Utility Rates,
37 U. Miami L. Rev.
Available at: http://repository.law.miami.edu/umlr/vol37/iss3/7