Effects of regulation on utility financing: theory and evidence. [Monograph]

Book · Fri Jan 01 04:00:00 EST 1982

OSTI ID:5113650

Taggart, Jr, R A

This paper examines the financing decisions of regulated public utilities. It is argued that the regulatory process affects utility-financing choices both by conditioning the environment in which these choices are made and by creating opportunities for firms to influence the regulated price through strategic financing behavior. The nature of this regulatory effect continually changes, however, as economic conditions change and as regulators, firms, and consumers adapt to one another's decisions. The direction of the impact on utility financing, therefore, may differ both over time and across regulatory jurisdictions. This theory of regulatory influence is tested by examining several episodes in the financing experience of US electric utilities from 1912 to 1979. Evidence of a regulatory effect on utility financing is found particularly for the early years of state-commission regulation. Examples of an adaptive response pattern on the part of regulators, firms, and consumers are also cited. 43 references, 2 figures, 2 tables.

• OSTI ID: 5113650
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
296000 -- Energy Planning & Policy-- Electric Power
DECISION MAKING
ECONOMIC IMPACT
ELECTRIC UTILITIES
FINANCING
PUBLIC UTILITIES
REGULATIONS