Electric rate shock and the future of utility construction

Journal Article · · Energy Conserv. Bull.; (United States)

OSTI ID:5830729

Nogee, A J

How state regulators spread the costs of overbudget and, in some cases, unneeded new power plants looms as a major political and economic issue directly affecting more than a third of the nation's households and businesses. Today's local battles over rate shock have an even greater national significance because they will shape investment incentives for decades to come. In addition to mismanaged nuclear projects, most nuclear and coal plants being finished today represent excess generating capacity. Utility reserve margins averaged 34% last year instead of the 15-20% above peak demand that analysts agree is desirable. State regulators are increasingly refusing to allow utilities to include new plants in the rate base, and utilities are responding with warnings about future shortages. They may also try to reform or repeal the Holding Company Act. Utility critics point to alternatives to central plant construction with cogeneration and small power generation. 2 figures.

• OSTI ID: 5830729
• Journal Information: Energy Conserv. Bull.; (United States), Journal Name: Energy Conserv. Bull.; (United States) Vol. 5:2; ISSN ECBUE
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200106 -- Fossil-Fueled Power Plants-- Economics
21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS
210801 -- Nuclear Power Plants-- Economics-- Construction & Operation-- (-1987)
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
CAPACITY
CONSTRUCTION
ECONOMIC IMPACT
ELECTRIC UTILITIES
INSTITUTIONAL FACTORS
INVESTMENT
POLITICAL ASPECTS
POWER DEMAND
POWER PLANTS
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS