Growth of disincentives for utility plant investment

Journal Article · Thu Apr 04 04:00:00 EST 1985 · Public Util. Fortn.; (United States)

OSTI ID:5843786

Studness, C M

The regulatory issues of excess generating capacity and rate base disallowance are causing disincentives for future plant investment that could lead to inadequate capacity in the future. The persistence of excess capacity despite the economic recession stems from the utilities pushing ahead with major construction programs during the late 1970s and early 1980s. Regulators have reacted by requiring investors to bear the risk of unneeded capacity. This threatens the viability of many small- and medium-sized utilities, some of which have cancelled or delayed construction projects. Institutional factors will be as responsible for the inevitable supply shortage as for the current excess.

• OSTI ID: 5843786
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 115:7; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200106* -- Fossil-Fueled Power Plants-- Economics
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
CONSTRUCTION
ECONOMICS
ELECTRIC UTILITIES
FINANCIAL INCENTIVES
INSTITUTIONAL FACTORS
POWER PLANTS
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS