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Insight Series: An Application of Game Theory to Rate of Return Regulation in Alberta

November 16, 2017 @ 11:30 am - 1:00 pm

As part of our Fall 2017 Lunch and Learn Series, please join us on Thursday November 16, 2017 at 11:30 AM for lunch, followed by a presentation at noon by Mr. John P. Evans and Dr. Robert E. Evans entitled An Application of Game Theory to Rate of Return Regulation in Alberta.

Utilities in the electricity, natural gas and pipeline sectors within Alberta are subject to rate of return regulation by the Alberta Utilities Commission (AUC). As part of this regulatory process, the AUC is routinely called upon to determine a fair rate of return on common equity based on expert evidence.

This presentation addresses the challenge in recent years of a widening range of expert recommendations in cost of capital proceedings by utilities and intervenors, which is making it increasingly difficult for the Commission to have confidence in its rate of return decisions and the underlying evidence it has been asked to rely upon.

The authors have sought to address this problem through economic “game theory”. Come hear their innovative policy approach and whether their recommendations will help solve the current regulatory policy problem described above.

About our keynotes

Robert E. Evans is President of Economic Research Associates Limited, a consulting firm specializing in problems of the regulated electric, gas, pipeline and transportation industries.

John P. Evans is a fourth-year Honours Economics student at St. Francis Xavier University, President of the St. FX Economics Society and a Founder and Editor-in-Chief of X-Markets Monthly.

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November 16, 2017
11:30 am - 1:00 pm


Van Horne Institute


VHI Conference Centre
715 5 Avenue SW
Calgary, Alberta T2P 2X6 Canada
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587 430 0291