Three Mile Island: the regulatory challenge of 1979

Journal Article · Thu Jul 19 04:00:00 EDT 1979 · Public Util. Fortn.; (United States)

OSTI ID:6109620

Ferrar, T A

Three Mile Island nuclear accident has posed a regulatory challenge transcending the immediate plight of the electric-utility companies directly concerned. Specifically, will the residual costs of an accident of catastrophic proportions be distributed in a way that is conducive to continued prudent, but innovative, investment decisions on the part of electric utility managements. The regulatory decisions distributing these costs will signal to investors that historical expectations as to the security of utility investments are warranted or unwarranted. To the extent that they are perceived to be unwarranted the costs of capital needed to develop effective new energy technologies will rise, perhaps prohibitively. It is the author's conclusion that, to assure efficient investment decision-making, potential beneficiaries of any large project must assume its risks. If the group of expected beneficiaries and the group which is burdened with the attendant financial risks are not the same, the result may be an inordinate cost-of-capital impact upon the utility industry and all its future customers.

• OSTI ID: 6109620
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 104:2; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

21 SPECIFIC NUCLEAR REACTORS AND ASSOCIATED PLANTS
210200 -- Power Reactors
Nonbreeding
Light-Water Moderated
Nonboiling Water Cooled
210700 -- Nuclear Power Plants-- Regulation & Licensing
29 ENERGY PLANNING, POLICY, AND ECONOMY
290600* -- Energy Planning & Policy-- Nuclear Energy
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
ACCIDENTS
CIVIL LIABILITY
ECONOMIC IMPACT
ENRICHED URANIUM REACTORS
INVESTMENT
LIABILITIES
NUCLEAR FACILITIES
NUCLEAR POWER PLANTS
POWER PLANTS
POWER REACTORS
PWR TYPE REACTORS
REACTOR ACCIDENTS
REACTOR SAFETY
REACTORS
REGULATIONS
RISK ASSESSMENT
SAFETY
THERMAL POWER PLANTS
THERMAL REACTORS
THREE MILE ISLAND-2 REACTOR
WATER COOLED REACTORS
WATER MODERATED REACTORS