Why electric utilities need industrial business

Journal Article · Mon Mar 01 04:00:00 EST 1982 · Energy Manage. (Cleveland, Ohio); (United States)

OSTI ID:5512663

Sherry, E V

Electric utilities suffer financial stress when the market-to-book ratio is below equity and investors move to other types of savings investment. Utility-financing problems date to 1965 when inflation began pushing up interest rates. The impact is harder on utility than industrial stocks. A bright utility future requires not only a healthy economy with inflation under control, but a strong industrial-customer base. Policies that alienate industrial customers by asking them to pay a larger share of system costs and discourage industrial load growth will be counterproductive. A comparison of load demand, sales, and rates by sector shows that erosion of the industrial load lessens system stability and increases system costs. The relationship between utilities and industrial customers needs to move from its present adversarial attitude to one of communication and cooperation. 6 figures. (DCK)

• Research Organization: Air Products and Chemicals, Inc., Allentown, PA
• OSTI ID: 5512663
• Journal Information: Energy Manage. (Cleveland, Ohio); (United States), Journal Name: Energy Manage. (Cleveland, Ohio); (United States) Vol. 8:3; ISSN ENEMD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
CONSUMER PROTECTION
COOPERATION
ELECTRIC UTILITIES
FINANCING
INDUSTRY
PUBLIC UTILITIES
RATE STRUCTURE