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Title: Utility diversification

Abstract

A review of the available evidence of the effect of diversification on a utility's financial attractiveness suggests that diversified gas companies have higher earnings, better credit ratings, and more marketable securities than do the less diversified utilities. Regulatory commissions must, however, always be alert to ways in which a company's unregulated activities might adversely affect recipients of the regulated service. Once assured that the service customers are adequately protected, the commission should neither review the specific ventures of unregulated subsidiaries nor become involved in regulating their security issuances or dividend payments. In general, utility diversification should be subject only to managerial discretion and the discipline of the market.

Authors:
Publication Date:
Research Org.:
Cornell Univ., Ithaca, NY
OSTI Identifier:
6273064
Resource Type:
Journal Article
Journal Name:
Energy J.; (United States)
Additional Journal Information:
Journal Volume: 4
Country of Publication:
United States
Language:
English
Subject:
03 NATURAL GAS; GAS UTILITIES; DIVERSIFICATION; ECONOMY; INVESTMENT; NATURAL GAS; REGULATIONS; ENERGY SOURCES; FLUIDS; FOSSIL FUELS; FUEL GAS; FUELS; GAS FUELS; GASES; PUBLIC UTILITIES; 030600* - Natural Gas- Economic, Industrial, & Business Aspects

Citation Formats

Kahn, A E. Utility diversification. United States: N. p., 1983. Web. doi:10.5547/ISSN0195-6574-EJ-Vol4-No1-9.
Kahn, A E. Utility diversification. United States. https://doi.org/10.5547/ISSN0195-6574-EJ-Vol4-No1-9
Kahn, A E. 1983. "Utility diversification". United States. https://doi.org/10.5547/ISSN0195-6574-EJ-Vol4-No1-9.
@article{osti_6273064,
title = {Utility diversification},
author = {Kahn, A E},
abstractNote = {A review of the available evidence of the effect of diversification on a utility's financial attractiveness suggests that diversified gas companies have higher earnings, better credit ratings, and more marketable securities than do the less diversified utilities. Regulatory commissions must, however, always be alert to ways in which a company's unregulated activities might adversely affect recipients of the regulated service. Once assured that the service customers are adequately protected, the commission should neither review the specific ventures of unregulated subsidiaries nor become involved in regulating their security issuances or dividend payments. In general, utility diversification should be subject only to managerial discretion and the discipline of the market.},
doi = {10.5547/ISSN0195-6574-EJ-Vol4-No1-9},
url = {https://www.osti.gov/biblio/6273064}, journal = {Energy J.; (United States)},
number = ,
volume = 4,
place = {United States},
year = {Sat Jan 01 00:00:00 EST 1983},
month = {Sat Jan 01 00:00:00 EST 1983}
}