In PWP-022, White examines optimal regulatory response when a customer of a regulated utility chooses to forgo utility service in favor of acquiring services from an alternate, unregulated supplier. White presents a theoretical analysis which accounts for the incentive effects arising when the regulator is uncertain about the customer's cost of alternate supply. Under mild regularity conditions, he derives an explicit bypass policy as a function of the regulator's prior assessment of the potential bypasser's willingness to pay for continued utility service, and proves the optimality of this policy given the regulator's limited information. He concludes by addressing some limitations of current bypass policies, with particular regard to the electric power and telecommunications industries.