Abstract
This paper identifies criteria that public utility regulators can apply to assess the effectiveness of initiatives in making utility service more affordable to low-income households. It discusses the major features of energy-assistance (EA) actions that tend to make then successful from a societal perspective. Smart regulation demands that EA initiatives have favorable benefit-cost ratios. Regulators should strive to assure that each dollar expended returns the highest possible dividend, and that EA initiatives interfere minimally with other regulatory objectives; for example, minimal adverse effect on economic efficiency.
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