The Opacity of the Public Interest in Utility Regulation

For utility regulators, the central concern is acting in the “public interest,” typically viewed as the guiding purpose for regulatory decisions. The late economist and utility regulator Alfred Kahn defined the public interest as promoting economic efficiency (e.g., marginal‐cost pricing, efficient utility operations), consumer protection (e.g., from discriminatory and insufficient access to utility service), and the emulation of competitive market outcomes in sectors where competition was not possible.