1 Introduction
1.1 What is meant by economic regulation?
1.2 What is modern about economic regulation?
1.3 New experience and analysis
1.4 Structure of the book
PART I
2 The recurring question: why regulate utilities?
2.1 Normative rationales for public utility regulation
2.2 Alternative explanations for public utility regulation
2.3 lmplications of the different rationales for regulation
3 Alternatives to traditional regulation
3.1 Is economic regulation inevitable?
3.2 Competition for the market
3.3 Contestability and the threat of entry
3.4 State ownership of the utilities
3.5 Reliance on ex post competition Iaw
3.6 Deregulation’ policies and a reliance on competition
3.7 Negotiated settlements
3.8 Other alternative approaches to public utility regulation
3.9 Conclusion
4 PrincipIes of regulation for core network activities
4.1 Pubiic utility industry structures
4.2 Pricing principles under full information
4.3 Pricing principles for the multi-product firm
4.4 Regulation in the context of imperfect information
4.5 Pricing in a multi-period context
4.6 Principles relating to quality and cost reduction
4.7 Conclusion
5 Forms of price regulation
5.1 Rate of return regulation
5.2 Price cap regulation
5.3 The relationship between rate of return and price cap
5.4 Hybrids and adaptations to traditional price regulation
5.5 Price regulation when competition is emerging
5.6 Conclusion
6 Regulation in the presence of competition
6.1 Access in the public utility industries
6.2 One-way access pricing
6.3 Two-way access pricing
6.4 Access pricing and investment
6.5 Vertical separation in the public utility industries
6.6 Conclusion
7 The institutions of regulation
7.1 The rationale for independent economic regulatory agencies
7.2 The evolution of independent regulatory agencies
7.3 Design of regulatory agencies and the scope of their power
7.4 Regulatory oversight: quis custodiet ipsos custodes?
7.5 Conclusion
8 Electricity regulation
8.1 Physical and economic characteristics of electricity
8.2 Approach to electricity regulation
8.3 Regulatory policy issues in the electricity industry
8.4 Conclusion
9 Gas regulation
9,1 Physical and economic characteristics of gas
9.2 Approach to gas regulation
9.3 Regulatory policy issues in the gas industry
9.4 Conclusion
10 Telecommunications regulation
10.1 Physical and economic characteristics of telecommunications networks and services
10.2 Approach to telecommunications regulation
10.3 Regulatory policy issues in the telecommunications industry
10.4 Conclusion
11 Water and wastewater regulation
11.1 Physical and economic characteristics of water and wastewater
11.2 Approach to water and wastewater regulation
11.3 Regulatory policy issues in the water and wastewater industry
11.4 Conclusion
12 Conclusions
12.1 Rationales for, and alternatives to, public utility regulation
12.2 The relationship between theoretical principles and regulatory practice
12.3 Regulation in practice
12.4 Evidence on the effects of restructuring policies in the public utility industries
12.5 Future challenges for regulation
