1/6/2024 0 Comments Lgee power utilityIt does not hold any kind of legislative or executive power.Īlternative energy has become more and more prevalent in recent times and as it is inherently independent of more traditional sources of energy, the market seems to have a very different structure. There does exist a World Energy Council, but its mission is mostly to advise and share new information. There is no existence of any influential international energy oversight organization. Oversight is typically carried out at the national level, however it varies depending on financial support and external influences. As electric utility monopolies have been increasingly broken up into deregulated businesses, executive compensation has risen particularly incentive compensation. Currently 24 states allow for deregulated electric utilities: Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Virginia, Arizona, Arkansas, California, Connecticut, Delaware, Illinois, Maine, Maryland, Massachusetts, Michigan, Montana, New Hampshire, New Jersey, New Mexico, New York, and Washington D.C. In the United States, the Energy Policy Act of 1992 removed previous barriers to wholesale competition in the electric utility industry. It has been found that increased compensation is also more likely to attract executives experienced in working in competitive environments. The need to encourage risk-taking behavior in seeking new investment opportunities while keeping costs under control requires deregulated companies to offer performance-based incentives to their executives. Just as increased constraints from regulation drive compensation down for executives in electric utilities, deregulation has been shown to increase remuneration. These companies have more political constraints than those in a favorable regulatory environment and are less likely to have a positive response to requests for rate increases. The compensation for electric utility executives will be the lowest in regulated utilities that have an unfavorable regulatory environment. They are less likely to approve compensation policies that include incentive-based pay. Executives in regulated electric utilities are less likely to be paid for their performance in bonuses or stock options. Regulated companies are less likely to use incentive-based remuneration in addition to base salaries. Just as regulated utilities and their governing bodies struggle to maintain a balance between keeping consumer costs reasonable and being profitable enough to attract investors, they must also compete with private companies for talented executives and then be able to retain those executives. The executive compensation received by the executives in utility companies often receives the most scrutiny in the review of operating expenses. ( February 2016) ( Learn how and when to remove this template message) You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. The examples and perspective in this article may not represent a worldwide view of the subject.
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