A regulatory regime built around price or revenue caps would provide for upper limits on toll rates for a particular class of service or revenue that can be generated by that service, drive efficiency gains in operations and maintenance, and allow for the establishment of price caps that reflect certain minimum efficiency gains on an inflation adjusted basis.
The caps established under such a regulatory regime could be either for an overall "basket" of services (and overall efficiency gain) or individual services (with individual efficiency gains).
Caps that are established under this regime can allow for periodic or event driven (oil shock, financial crisis, or other severe economic or other shock) recalibration of cost and efficiency factors. Importantly, this re-emphasizes the need for a robust and living financial model
A consistent application of a price or revenue cap regulatory regime would facilitate benchmarking against other projects in US and globally. The stable regulatory and political environment in US makes this approach less risky to PPP providers than in many developing countries