“Shock Value: Bill Smoothing and Sticky Prices in Utility Retail Rates” Catherine “Catie” Hausman Assistant Professor of Public Policy


Wholesale natural gas prices vary tremendously as a result of supply-side shocks such as fracking and demand-side shocks such as unusual winter weather. In this paper, I examine how natural gas utilities respond to these cost shocks. Because distributors must cover both gas costs as well as large capital costs, the typical utility uses two-part tariffs. I… (More)