Emerging Practices for Capital Adequacy © Copyright 2003, CCRO. All rights reserved. 69 The last category of companies described above has the most exposure to risks from its regulated business, and its need for economic capital should not be viewed as significantly different from that of an energy merchant company for at least the portion of its regulated business that is exposed to market prices for procuring power. In conclusion, this appendix addresses several common degrees to which regulated utilities are afforded cost recovery by various regulators. However, this document does not assume to cover every possible degree of regulatory recovery in place across the entire regulatory spectrum. To the extent that other degrees of regulatory recovery may be in place, the need for economic capital will vary relative to the extent of recovery allowed by or expected from the regulator.