Chairman’s Reading Recommendations

 

Electrifying America by I. David Rosenstein.

The author is a forty year industry veteran  retiring as Vice-President and General Counsel of Essential Power. The book presents the evolution of electric service from Edison to present day issue of climate change. It’s an informative and easy to read history of legal, corporate and political developments in the electricity sector, including some insightful information about Thomas Edison and his competitors. His conclusion seems to be “that,  no matter how daunting the challenges, the electric industry and its policy makers have always met the challenges head-on and ensured delivery of electric supply that meets the public interest.

 

Risk and Return for Regulated Industries by members of the Brattle Group, Academic Press, www.elsevier.com/books-and-journals.

This book is a must read for everyone involved in rate cases. It makes a thorough survey of the best practice in estimating the cost of equity capital, etc. examining all the factors integral to the rate making process. It also incorporates  the best international practices. The author states that  “US industry has been lucky to operate in mostly stable industries and  in an economic environment of low inflation and low interest rates.  But quiet times are good times to think hard about alternative methods and possible improvements. This book provides the breadth of information and perspective required for that kind of thought.”