Electric utility capital spending and rate needs - the next decade

Journal Article · Thu Jun 13 04:00:00 EDT 1985 · Public Util. Fortn.; (United States)

OSTI ID:5533123

Studness, C M

According to a survey of 85 electric utilities that account for 95% of investor-owned electric utility revenue, capital spending will fall modestly in 1985 and sharply in 1986 and 1987. Specifically, management projects capital spending including the allowance for funds used during construction to drop 1.5% in 1985, 13% in 1986, and 10.5% in 1987, for an overall decline of 23% in three years. This capital spending path would produce a decline in the industry's capitalization growth rate from 9.5% in 1984 to just over 1.5% per year in 1988 and 1989, after which it would accelerate to 7.3% by 1994. There should be virtually no need for utilities to sell common stock from 1988 until 1992 and only inconsequential requirements through 1994. Hence, financing should not become burdensome for the utilities during the next decade, even if a new building cycle produces sharp rises in capital spending during the early 1990s.

• OSTI ID: 5533123
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 115:12; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
AFUDC
CAPITAL
CONSTRUCTION
CWIP
ELECTRIC UTILITIES
EXPENDITURES
FORECASTING
INVESTMENT
PUBLIC UTILITIES
SURVEYS