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Ratemaking by Administrative Agencies

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Because so many fundamental administrative law cases involve ratemaking, a feel for this process is a useful adjunct to the study of administrative law. The program considers why we allow agencies to set prices in some markets, how agencies determine the total revenue needed by the regulated company, and how the burden of producing that revenue is allocated among different classes of ratepayers. The program focuses on classic "cost of service" ratemaking, with some brief mention of reform efforts under way in many areas.

Lesson Completion Time

1 hour
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Lesson ID

ADM04