A Note on Allowed and Realized Rates of Return in the Electric Utility Industry

Most empirical investigations of electric utility behavior use the realized rate of return as a proxy for the allowed rate of return, We examine the validity of this assumption and investigate the relationship of the allowed and realized rates to the cost of capital between 1973 and 1982, We use two measures of the cost of capital: one based on returns to book equity, the other derived from a market price of equity. While realized and allowed rates were generally higher than the book measure throughout the period, both of the rates of return were less than the market price of capital after 1979. We also find firms did not earn their allowed rate of return after 1974. Therefore, the use of the realized rate as a proxy for the allowed rate in empirical models will lead to biased parameter estimates. To help correct this bias, we give data for allowed rates

Preparing for the Improbable: Safety Incentives and the Price-Anderson Act

The Price-Anderson Act requires commercial nuclear power plants to maintain (approximately) $660 million in off-site accident coverage through two forms of insurance: market-provided private insurance and self-insurance in the form of retrospective assessments of reactor owners. We examine how changes in retrospective assessments influence the safety incentives of nuclear reactor owners. As one would expect, increases in self-insurance premiums increase the incentive to install safety systems more quickly. However, a more important conclusion is that self-insurance premiums as a function of reactor riskiness, rather than equal payments by reactor owners, yield a higher level of safety than under the current law

Searching for "monogenic diabetes" in dogs using a candidate gene approach

BACKGROUND: Canine diabetes is a common endocrine disorder with an estimated breed-related prevalence ranging from 0.005% to 1.5% in pet dogs. Increased prevalence in some breeds suggests that diabetes in dogs is influenced by genetic factors and similarities between canine and human diabetes phenotypes suggest that the same genes might be associated with disease susceptibility in both species. Between 1-5% of human diabetes cases result from mutations in a single gene, including maturity onset diabetes of the adult (MODY) and neonatal diabetes mellitus (NDM). It is not clear whether monogenic forms of diabetes exist within some dog breeds. Identification of forms of canine monogenic diabetes could help to resolve the heterogeneity of the condition and lead to development of breed-specific genetic tests for diabetes susceptibility. RESULTS: Seventeen dog breeds were screened for single nucleotide polymorphisms (SNPs) in eighteen genes that have been associated with human MODY/NDM. Six SNP associations were found from five genes, with one gene (ZFP57) being associated in two different breeds. CONCLUSIONS: Some of the genes that have been associated with susceptibility to MODY and NDM in humans appear to also be associated with canine diabetes, although the limited number of associations identified in this study indicates canine diabetes is a heterogeneous condition and is most likely to be a polygenic trait in most dog breeds. ELECTRONIC SUPPLEMENTARY MATERIAL: The online version of this article (doi:10.1186/2052-6687-1-8) contains supplementary material, which is available to authorized users

The Role of Blood Pressure Variability in the Development of Nephropathy in Type 1 Diabetes

OBJECTIVE - Increases in blood pressure and visit-to-visit variability have both been found to independently increase the likelihood of cardiovascular events in nondiabetic individuals. This study has investigated whether each may also influence the development of microvascular complications in type 1 diabetes by examining data from the Diabetes Control and Complications Trial (DCCT). RESEARCH DESIGN AND METHODS - Using binary longitudinal multiple logistic regression, mean systolic (SBP) and diastolic (DBP) blood pressure as well as annual visit-to-visit variability (SD.SBP and SD.DBP, respectively) was related to the risk of the development/progression of nephropathy and retinopathy in initially normotensive subjects who did not become pregnant during the DCCT. RESULTS - Mean SBP and SD.SBP were independently predictive of albuminuria (odds ratio 1.005 [95% CI 1.002-1.008], P < 0.001 and 1.093 [1.069-1.117], P < 0.001, respectively, for 1 mmHg change), although SBP variability did not add to mean SBP in predicting retinopathy (0.999 [0.985-1.013], P = 0.93). DBP variability was also independently predictive of nephropathy (1.102 [1.068-1.137], P < 0.001) and not of retinopathy (0.991 [0.971-1.010], P = 0.37). Mean SBP was poorly related to SD.SBP (r(2) < 0.01) as was mean DBP with SD. DBP (r(2) < 0.01). CONCLUSIONS - Visit-to-visit variability in blood pressure consistently independently added to mean blood pressure in predicting the risk of nephropathy, but not retinopathy, in the DCCT. This observation could have implications for the management and treatment of blood pressure in patients with type 1 diabetes

Altered cortical activation patterns associated with baroreflex unloading following 24 h of physical deconditioning

Cardiovascular arousal is associated with patterned cortical activity changes. Head-down-tilt bed rest (HDBR) dimishes the baroreflex-mediated cardiac control. The present study tested the hypothesis that HDBR deconditioning would modify the forebrain organization for heart rate (HR) control during baroreflex unloading. Heart rate variability (HRV), blood pressure and plasma hormones were analysed at rest, whereas HR and cortical autonomic activation patterns (functional magnetic resonance imaging) were measured during graded and randomly assigned lower body negative pressure treatments (LBNP, -15 and -35 mmHg) both before (Pre) and after (Post) a 24 h HDBR protocol (study 1; n= 8). An additional group was tested before and following diuretic-induced hypovolaemia (study 2; n= 9; spironolactone, 100 mg day-1 for 3 days) that mimicked the plasma volume lost during HDBR (-15% in both studies; P \u3c 0.05). Head-down bed rest with hypovolaemia did not affect baseline HR, mean arterial pressure, HRV or plasma catecholamines. Head-down bed rest augmented the LBNP-induced HR response (P \u3c 0.05), and this was associated with bed-rest-induced development of the following changes: (i) enhanced activation within the genual anterior cingulate cortex and the right anterior insular cortex; and (ii) deactivation patterns within the subgenual regions of the anterior cingulate cortex. Diuretic treatment (without HDBR) did not affect baseline HR and mean arterial pressure, but did reduce resting HRV and elevated circulating noradrenaline and plasma renin activity (P \u3c 0.05). The greater HR response to LBNP following diuretic (P \u3c 0.05) was associated with diminished activation of the right anterior insula. Our findings indicate that 24 h of HDBR minimized the impact of diuretic treatment on baseline autonomic and cardiovascular variables. The findings also indicate that despite the similar augmentation of HR responses to LBNP and despite similar pre-intervention cortical activation patterns, HDBR and diuretic treatment produced different effects on the cortical responses, with HDBR affecting anterior cingulate cortex and right insula regions, whereas diuretic treatment affected primarily the right insula alone, but in a direction that was opposite to HDBR. The data indicate that physical deconditioning can induce rapid functional changes within the cortical circuitry associated with baroreflex unloading, changes that are distinct from diuretic-induced hypovolaemia. The results suggest that physical activity patterns exert a rapid and notable impact on the cortical circuitry associated with cardiovascular control. © 2012 The Physiological Society

Urban particulate pollution reduction by four species of green roof vegetation in a UK city

AbstractUrban particulate pollution in the UK remains at levels which have the potential to cause negative impacts on human health. There is a need, therefore, for mitigation strategies within cities, especially with regards to vehicular sources. The use of vegetation as a passive filter of urban air has been previously investigated, however green roof vegetation has not been specifically considered. The present study aims to quantify the effectiveness of four green roof species – creeping bentgrass (Agrostis stolonifera), red fescue (Festuca rubra), ribwort plantain (Plantago lanceolata) and sedum (Sedum album) – at capturing particulate matter smaller than 10 μm (PM10). Plants were grown in a location away from major road sources of PM10 and transplanted onto two roofs in Manchester city centre. One roof is adjacent to a major traffic source and one roof is characterised more by urban background inputs. Significant differences in metal containing PM10 capture were found between sites and between species. Site differences were explained by proximity to major sources. Species differences arise from differences in macro and micro morphology of the above surface biomass. The study finds that the grasses, A. stolonifera and F. rubra, are more effective than P. lanceolata and S. album at PM10 capture. Quantification of the annual PM10 removal potential was calculated under a maximum sedum green roof installation scenario for an area of the city centre, which totals 325 ha. Remediation of 2.3% (±0.1%) of 9.18 tonnes PM10 inputs for this area could be achieved under this scenario