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Market power analysis
Affiliate transactions
Regulated utilities’ transactions with their unregulated affiliates may raise concerns related to affiliate abuse, self-dealing, and cross-subsidization. Apart from harming captive ratepayers, these practices can impose significant economic damages on independent competitors and prevent the emergence of truly competitive markets. These types of abuses may occur through market-based and cost-based transactions, as well as in competitive solicitations. Our deep economic understanding of regulated industries and thorough examination of industry transactions allow us to analyze whether complex affiliate transactions harm consumers and competitors.
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