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[PEN-L:33524] RE: Re: Re: RE: Right wing sees the light! (almost )



Title: RE: [PEN-L:33519] Re: Re: RE: Right wing sees the light! (almost)

Gene Coyle writes:
>An aside re Jim's post -- nuclear investments did benefit from rate of
return regulation -- but that is NOT to say they were driven by
regulation.  Investments still have to make financial sense under any
regime, regulated or not.<

I think I said that the old style regulation in California (before the dereg) _encouraged_ investment in nukes. As I understand it, the old-style regulation system (based on a guaranteed "fair" rate of return) encouraged investments that raised the value of the rate base, since profits under this system = the rate base times the fair rate of return. Nukes filled this bill, though it's possible that other large investments could have done so, too.

Jim



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