Public advocacy and the regulatory climate

A State's regulatory climate is an important determinant of utility capital costs and construction expenditures. This paper demonstrates the relationship of public (both proxy and qrassroots) advocacy movements with state regulatory climate and the cost of electricity. The perceived indifference of the utility industry and the regulatory process to public advocacy movements may be exploited by politicians seeking public office on an anti-utility platform. The result can be the weakening of the industry's long-run ability to produce a reliable power supply.