Ratemaking v IEE surplus allocation method
I feel terrible asking as I am employed as a rate maker, but what exactly constitutes surplus allocation in ratemaking?
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I feel terrible asking as I am employed as a rate maker, but what exactly constitutes surplus allocation in ratemaking?
Comments
Cost of surplus (capital) can be incorporated into the profit provision that is used in ratemaking.
Where is surplus allocation in ratemaking discussed?
It's an Exam 8 topic, Advanced Ratemaking.