Does utility long-term debt really cost more than common equity

Journal Article · Thu Feb 18 04:00:00 EST 1982 · Public Util. Fortn.; (United States)

OSTI ID:5534123

Brennan, J F

In a considerable number of recent utility rate proceedings, consumer advocates have taken the position that the cost of utility debt is at the present time greater than the cost of equity and, accordingly, a utility should increase the equity component of its total capitalization. The author initiated and completed a major research program addressing the question of whether debt costs more than equity for a utility company during high-cost money periods. He reports that the spread in cost rate between debt and equity narrows during extreme tight money periods, but the former never rises above the latter. 4 figures, 1 table.

• Research Organization: Associated Utility Services, Inc., Mt. Laurel, NJ
• OSTI ID: 5534123
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 109:4; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
CAPITALIZED COST
CONSUMER PROTECTION
COST
ECONOMIC ANALYSIS
ECONOMICS
FINANCING
PUBLIC UTILITIES