We analyze the treatment and impact of idiosyncratic or firm-specific risk in regulation. Regulatory authorities … regularly ignore firm-specific characteristics, such as size or asset ages, implying different risk exposure in incentive … all firms. This will lead to implicit discrimination. We combine models of firm-specific risk, liquidity management and …

that they would be exposed to risk from fluctuations in their electricity cost. The concern seems to be that a customer … larger than it had budgeted for. I analyze the magnitude of this risk, using demand data from 1142 large industrial customers …, and then ask how much of this risk can be eliminated through various straightforward financial instruments. I find that …