Prudence issues affecting the US Electric Utility Industry: Executive summary

Technical Report · Sun Nov 01 04:00:00 EST 1987

OSTI ID:5805820

The cost impact to private utilities resulting from prudence hearings before State Public Utility (Service) Commissions is currently a matter of considerable concern to investors and the nation. Cost disallowances for many utilities threaten the economic health of the companies. The diallowances, which deny full construction cost recovery to utilities, have had a negative effect on the ordering of any new base load power plants, either nuclear or coal. They have contributed to the fact that no nuclear plants have been ordered since 1978, and none are currently being planned in the US. This situation has led to a major national concern that adequate, reliable and economic electric power may not be available to fully meet future needs of the country. The US Department of Energy is addressing the institutional, financial and regulatory problems of the nuclear power industry. This report addresses the prudence issues aspect of this program. This includes the development of a body of data depicting the causes of electric power plant cost disallowances, analysis of the causes and their impact, and the development of recommended actions that may eliminate or alleviate the negative conditions found.

• Research Organization: United Engineers and Constructors, Inc., Philadelphia, PA (USA)
• DOE Contract Number: AC05-84OR21400
• OSTI ID: 5805820
• Report Number(s): ORNL/Sub-86-56559/2; ON: DE88003702
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
CONSTRUCTION
COST RECOVERY
DOCUMENT TYPES
ECONOMICS
ELECTRIC UTILITIES
FOSSIL-FUEL POWER PLANTS
HEARINGS
LEGAL ASPECTS
NUCLEAR FACILITIES
NUCLEAR POWER PLANTS
POWER PLANTS
PRICING REGULATIONS
PUBLIC UTILITIES
RATE STRUCTURE
RECOMMENDATIONS
REGULATIONS
THERMAL POWER PLANTS