The disparate adoption of price cap regulation in the U.S. telecommunications and electricity sectors

Price cap regulation (PCR) has experienced widespread adoption in the U.S. telecommunications industry, but not in the electricity sector. We suggest that these disparate experiences may reflect in part the manner in which PCR often is implemented in the U.S., relatively limited opportunity for “regulatory bargains” in the electricity sector, and relatively limited competition in the transmission and distribution components of this sector.