Effect of nuclear ownership on utility bond ratings and yields
Abstract
The major objective of this study was to test the hypothesis that investors have required an additional interest rate premium before purchasing bonds of utilities with large investments in nuclear facilities. The study required several tasks. First, the literature relating to firm bankruptcy and default was reviewed. Second, the failing financial health of the electric utility industry was assessed in terms of construction problems, the impact of federal and state regulations, and the impact of Three Mile Island. Finally, data were collected on 63 electric utilities. This allowed statistical estimation of the magnitude of the risk premium associated with utility involvement in nuclear power. The effect of this involvement on a utility's bond ratings was also examined. Multiple regression was the statistical tool used for the statistical testing and estimation.
- Authors:
- Publication Date:
- Research Org.:
- Pacific Northwest National Lab. (PNNL), Richland, WA (United States)
- OSTI Identifier:
- 5403249
- Report Number(s):
- PNL-4175
ON: DE82008491
- DOE Contract Number:
- AC06-76RL01830
- Resource Type:
- Technical Report
- Country of Publication:
- United States
- Language:
- English
- Subject:
- 21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS; 29 ENERGY PLANNING, POLICY AND ECONOMY; NUCLEAR POWER PLANTS; COST; FINANCING; OWNERSHIP; ECONOMICS; ELECTRIC UTILITIES; NUCLEAR FACILITIES; POWER PLANTS; PUBLIC UTILITIES; THERMAL POWER PLANTS; 210800* - Nuclear Power Plants- Economics; 290600 - Energy Planning & Policy- Nuclear Energy
Citation Formats
Nesse, R J. Effect of nuclear ownership on utility bond ratings and yields. United States: N. p., 1982.
Web. doi:10.2172/5403249.
Nesse, R J. Effect of nuclear ownership on utility bond ratings and yields. United States. https://doi.org/10.2172/5403249
Nesse, R J. 1982.
"Effect of nuclear ownership on utility bond ratings and yields". United States. https://doi.org/10.2172/5403249. https://www.osti.gov/servlets/purl/5403249.
@article{osti_5403249,
title = {Effect of nuclear ownership on utility bond ratings and yields},
author = {Nesse, R J},
abstractNote = {The major objective of this study was to test the hypothesis that investors have required an additional interest rate premium before purchasing bonds of utilities with large investments in nuclear facilities. The study required several tasks. First, the literature relating to firm bankruptcy and default was reviewed. Second, the failing financial health of the electric utility industry was assessed in terms of construction problems, the impact of federal and state regulations, and the impact of Three Mile Island. Finally, data were collected on 63 electric utilities. This allowed statistical estimation of the magnitude of the risk premium associated with utility involvement in nuclear power. The effect of this involvement on a utility's bond ratings was also examined. Multiple regression was the statistical tool used for the statistical testing and estimation.},
doi = {10.2172/5403249},
url = {https://www.osti.gov/biblio/5403249},
journal = {},
number = ,
volume = ,
place = {United States},
year = {Mon Feb 01 00:00:00 EST 1982},
month = {Mon Feb 01 00:00:00 EST 1982}
}