Utilities paying price for counting on demand growth that never came

Journal Article · Sat Oct 17 04:00:00 EDT 1981 · Natl. J.; (United States)

OSTI ID:6203585

Corrigan, R

Utilities are suffering from a combination of problems caused by a flattened demand, high prices, poor earnings, depressed stocks, and cost overruns. Federal policies to help include an endorsement of nuclear power, assistance for the Three Mile Island cleanup, tax incentives to attract capital, and promises of rate relief may not be specific enough. Utilities are looking toward economic deregulation and new business opportunities beyond power generation and delivery. Overcommitments to expansion are a major problem, but many projects are under construction and need extra money to complete. Whether customers should be charged for future capacity by including construction costs in the rate base will be decided on whether the customer is considered a mandatory investor. Proponents of deregulation view electricity as a product instead of an entitlement and see a market ready for new kinds of energy production and services. (DCK)

• OSTI ID: 6203585
• Journal Information: Natl. J.; (United States), Journal Name: Natl. J.; (United States) Vol. 13:42; ISSN NAJOD
• 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
296000* -- Energy Planning & Policy-- Electric Power
CONSTRUCTION
ECONOMIC IMPACT
ELECTRIC UTILITIES
GOVERNMENT POLICIES
INVESTMENT
POWER DEMAND
POWER PLANTS
PUBLIC UTILITIES
REGULATIONS