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Why would a firm that has cost-of-service regulation employ peak load pricing?

Why would a firm that has cost-of-service regulation employ peak load pricing?

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A firm with cost of service regulation would charge its prices based on services provided to different customers for different products and services. It can be in the form of labor, materials, shipping costs or any other goods and services. A firm with such regulation would try to take advantage of the 'peak' situation when the demand for certain goods and services are very high, therefore, it will employ peak load pricing, that is, the firm will charge different prices during different times of the day or days of the week to take full advantage of the market demand situation and maximize its profits.

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