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20 For details on this scherne, see S. Oren (1998). We note that rational expectations on the part of custorners will result in their anticipation of such offsets and therefore they will adjust their response to priority pricing accordingly. Transmission - Enabler 01 Wholesale Competition 37 congestion charge and the MWh is to give the ITC an incentive to improve utilization and invest optimally in capacity. Unfortunately this is not a simple problem and remains one of the key open questions in the economics of electric power.
Review ofIndustrial Organization 16: 343-356. Lehman, Dale E. and Dennis L. Weisman. 2000b. "The Telecommunications Act of 1996: The 'Costs' of Managed Competition. , The American Enterprise Institute and Boston, MA: Kluwer Academic Publishers (forthcoming). Levy, Brian and Pablo Spiller. 1994. " Journal of Law, Economics and Organization 10(2): 201-246. Littlechild, Stephen C. 1983. Regulation of British Telecommunications' Profitability. London, Department of Trade and Industry. Lyon, Thomas.
23 Joskow (1999) argues that incentive regulation along the lines of that employed in the United Kingdom for the National Grid Company (NGC) may be worth considering the United 8tates. 40 Expanding Competition in Regulated Industries Hogan, William W. 1992. " Journal ofRegulatory Economics 4(3): 211-242. Joskow, Paul L.. 1999. Comments ofProfessor Paul L. Joskow. Federal Energy Regulatory Commission, Docket No. Rm99-2-000, August 16, 1999. Kleindorfer, Paul R. 1998. " In Designing Competitive Electricity Markets, edited by Hung-Po Chao and Hillard G.