Encourage Efficient Investment

The overall funding and finance framework should encourage efficiency not only in system use but also in system investment. In other words, it is not enough to ensure that users are paying their full costs; resultant revenues also should be invested efficiently in projects that represent cost-effective uses of what will continue to be limited resources, while also recognizing that some cross-subsidization in the system is required.

Once more efficient use of the system is established, more efficient investment may follow. Achieving the objective of efficient investment, however, also requires strong analytical tools and decision-making discipline in order to fully translate optimized system use into the most efficient set of investment decisions.