Regulatory Risk and the Cost of Capital - Determinants and Implications for Rate Regulation

Basic Elements for a Comprehensive Concept of Regulatory Risk - Models, Objectives, Process, Cost Concepts and Types of Rate Regulation.- Impact of Rate Regulation on the Risk of a Regulated Firm.- Development of a Regulatory Control Panel - Analysis of Individual Variables of Rate Regulation as Determinants of Regulatory Risk.- Determination of the Regulatory Rate Base.- Market-Based Assessment of the Cost of Capital for a Rate-Regulated Firm.- Conclusions.