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Practicing Risk-Aware Electricity Regulation: What Every State Regulator Needs to Know

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Ronald J. Binz
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This report explores risk in energy investments in the United States from a regulator's standpoint. While focusing on risk, cost recovery mechanisms and levelized cost of energy are discussed in their respective roles in reducing investment risk. The authors stress that risk is not the only way to approach energy investments, but it is an essential part of the move into a changing energy landscape.