Risk and Return for Regulated Industries provides a much-needed, comprehensive review of how cost of capital risk arises and can be measured, how the special risks regulated industries face affect fair return, and the challenges that regulated industries are likely to face in the future. Rather than following the trend of broad industry introductions or textbook style reviews of utility finance, it covers the topics of most interest to regulators, regulated companies, regulatory lawyers, and rate-of-return analysts in all countries. Accordingly, the book also includes case studies about various countries and discussions of the lessons international regulatory procedures can offer. - Presents a unified treatment of the regulatory principles and practices used to assess the required return on capital - Addresses current practices before exploring the ways methods play out in practice, including irregularities, shortcomings, and concerns for the future - Focuses on developed economies instead of providing a comprehensive global reviews - Foreword by Stewart C. Myers

This authoritative guide presents the reasons behind industry regulation and the legal basis for it. Text discusses calculating rate base and rate of return, cost allocation, and rate design. Added attention is given to many of the new market-oriented forms of regulation, such as service unbundling, equal access to bottleneck facilities, competitive contracting, managed competition in health care, and incentive regulation.

This edition covers recent developments in the courts and Securities and Exchange Commission (SEC) rulemaking, including 1933 Act registration and broker-dealer regulation developments such as FINRA (Financial Industry Regulatory Authority). In addition to the leading cases and SEC developments, the casebook includes explanatory material to guide the student through this complex maze of regulation. The new edition enables instructors to easily omit or rearrange material. The problems and documentary supplement, available as a casebook companion, is designed for teachers using the problem method. It contains sample documents, including 1933 Act registration and backup documents.