Discussion: “Market Implications of Regulatory Form in the Electric Utility Industry: An Assessment of Incentive Regulation”

I would like to thank Nwaeze and Mereba for spending a great deal of effort to mitigate some of the concerns raised about the earlier version of this paper. Unfortunately, I have to fall back to my role of a critic and express my continuing concerns about the believability of the results and conclusions. To show the reasons for this doubt, I will look at the analysis and retreat to the setting and the underlying institutional aspects of the paper.