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U.S. Department of Energy
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Net present value analysis: appropriate for public utilities

Journal Article · · Public Util. Fortn.; (United States)
OSTI ID:5124809
The net-present-value technique widely used by unregulated companies for capital budgeting can also apply to regulated public utilities. Used to decide whether an investment is worthwhile, the NPV technique discounts an investment's initial outlay or cost. The type of project most appropriate for an NPV analysis is that designed to lower costs. Efficiency-improving investments can be adequately evaluated by the NPV method, which in certain cases is easier to use than some of the more complicated revenue-requirement computer models.
OSTI ID:
5124809
Journal Information:
Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 106; ISSN PUFNA
Country of Publication:
United States
Language:
English