Strategic dilemma of electric utilities. Part I

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

OSTI ID:5599197

Thompson, A A

In the first installment of a two-part article on the nature and dimensions of some serious economic difficulties that beset the electric-utility industry in the early 1980s, the author explores the causes and the size of the impact of electric utilities' shift from being a decreasing unit-cost business to being one of increasing unit costs. The dilemma is that the present grow and build strategy gives no advantage to either customers or investors, while the long-term effects of conservation and price elasticity have raised the risk of committing so much capital and could lead to a string of rate increases. A second installment will examine the strategic implications of this phenomenon for electric-utility management, addressing the problem of how best to manage an increasing unit-cost business. The perspective of both parts, or the article in its entirety, is that of looking at the total electric-utility enterprise in the context of the total environment. The special contribution of the article is that it ties toegether and establishes a unified view of the many exciting things now happening in the industry. 2 figures, 13 tables.

• Research Organization: Univ. of Alabama, Tuscaloosa
• OSTI ID: 5599197
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 109:6; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
CONSTRUCTION
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC UTILITIES
FINANCING
INVESTMENT
MANAGEMENT
PUBLIC UTILITIES