Maturity mix of public utility debt

Journal Article · Thu Feb 14 04:00:00 EST 1980 · Public Util. Fortn.; (United States)

OSTI ID:5378199

Kalotay, A J

The author pursues the question of the optimum capital structure for a public utility company beyond the familiar debt-to-equity ratio problem to focus principally on the appropriate mix of various terms of debt - long-term, short-term, and intermediate. His approach is based upon modern portfolio theory, selecting the least-cost mix, subject to an acceptable level of risk. He concludes that there are very few practical instances that justify the issuance of intermediate debt; an appropriate mix of short-term and long-term being normally preferable. The analysis also suggests that most public utilities could provide long-term benefits to the rate payer by increasing their short-term debt by a modest amount. A major part of the project on which this article reports was performed while the author was with the America Telephone and Telegraph Company.

• Research Organization: Dillon, Read and Co., Inc., New York, NY
• OSTI ID: 5378199
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 105:4; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
CAPITAL
FINANCING
INVESTMENT
PUBLIC UTILITIES
RISK ASSESSMENT