Financing the growth of electric utilities

Book · Thu Jan 01 04:00:00 EST 1976

OSTI ID:5353105

Scott, D L

The electric utility industry has attracted increasing public attention. The two primary areas of concern have centered on the financial health of the industry and the related problem of its ability to provide adequate capacity to meet future power requirements. General unhappiness by the public was first evident during the 1960s via demands for an environmental cleanup, but rapidly switched to outcries over higher utility rates subsequent to the Arab oil embargo. While nearly all people familiar with the industry's problems agree that higher rates are necessary and continue to be of primary importance, there is less accord on exactly how the rate increases should be structured. An increasing number of individuals are calling for a revamping of the traditional declining block-rate structures. It is argued that at a time when the electric utilities are striving to raise additional billions of dollars to meet inflation-bloated construction requirements, the typical rate structures continue to penalize smaller users. Regardless of how the new expenditures are financed or what rate structures are finally implemented, however, the trend to higher rates is inevitable. This study has been designed to include sufficient material to give the reader an overall view of the electric power industry as well as to provide a detailed investigation of its financial mechanisms. Chapter 2 presents a general overview of the industry, including its structure, regulation, and methods of power production. Costs of generation and the pricing of electricity are discussed in Chapter 3, while Chapter 4 reviews traditional methods of financing used by the industry. Chapter 5 projects sources of funds during the period 1976 to 1990, assuming historical trends of financing are employed. A summary, conclusions, and recommendations are presented in Chapter 6.

• OSTI ID: 5353105
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
CHARGES
CONSUMPTION RATES
COST
DATA
DOCUMENT TYPES
ELECTRIC POWER
ELECTRIC UTILITIES
FINANCING
GROWTH
INFORMATION
POWER
POWER GENERATION
PUBLIC UTILITIES
REGULATIONS
REVIEWS