This paper analyses the regulatory attitudes to asset valuation in the 20th century. It focuses in particular on the U.S. experience from Smith v Ames 169 U.S. 466 (1898) to Federal Power Commission v Hope Natural Gas 320 U.S. 591 (1944) and on the experience in the U.K. in last two decades of...

Privatised utilities are typically characterised by both undervaluation and underpricing. When faced with this problem, regulators have tended to employ a market-value approach to determine the regulatory asset base. This paper analyses this approach and shows that it magnifies the impact of any...

This paper analyses the regulatory attitudes to asset valuation in the twentieth century. It focuses in particular on the US experience from <italic>Smith v Ames 169 US 466 (1898)</italic> to <italic>Federal Power Commission v Hope Natural Gas 320 US 591 (</italic><italic>1944</italic>) and on the experience in the UK in last two decades of the...