Rate Unbundling: Are We There Yet? A Reality Check

This article is a critique of an earlier Public Utilities Fortnightly article (2/15/96, pp. 30) and is part of the ongoing industry discussion regarding unbundling of electric rates. The present authors discuss each point set forth in the earlier article. While the present article states that rate unbundling may be desirable, its analysis of the data and of the previous article shows that it is very difficult to quantify the Return on Equity differential between electric generation and electric transmission and distribution.