Toward a Combined Merchant-Regulatory Mechanism for Electricity Transmission Expansion. William Hogan, April 14, 2007, Paper. "Electricity transmission pricing and transmission grid expansion have received increasing regulatory and analytical attention in recent years. Since electricity transmission is a very special service with unusual characteristics, such as loop flows, the approaches have been largely tailor-made and not simply taken from the general economic literature or from the more specific but still general incentive regulation literature. An exception has been Vogelsang (2001), who postulated transmission..."