Competing in a market environment: What utilities must consider

Journal Article · Sat May 15 04:00:00 EDT 1993 · Public Utilities Fortnightly; (United States)

OSTI ID:6219631

Campbell, R ^[1]

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1. Deloitte Touche, Dallas, TX (United States)

Whether public utility decisionmakers choose to admit it or not, competition is here and confronting utilities with critical choices in what may be called the [open quotes]nineties environment.[close quotes] Competition in a market environment is and will be the primary force determining revenues and future economic survival. Utilities still retain a mandate to provide reliable service to customers in exchange for a virtual monopoly to operate in designated service territories. The desirability of continuing that mandate is dying a quick death, as utilities face entering the fast-paced arena of competition while dragging the weight of unrecovered investments behind them. What regulators and the utilities must decide cooperatively is how utilities can enter the new age with both feet down and running. To do this, utility managers must look at their companies, reevaluate the net worth of plant, and recognize and adopt strategies to deal with potential [open quotes]liabilities[close quotes] (for example, hazardous waste sites, fossil plant decommissioning, and plant obsolescence) in a process of streamlining for the contest ahead.

• OSTI ID: 6219631
• Journal Information: Public Utilities Fortnightly; (United States), Journal Name: Public Utilities Fortnightly; (United States) Vol. 131:10; ISSN PUFNAV; ISSN 0033-3808
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
ACCOUNTING
COMPETITION
DECOMMISSIONING
DEPRECIATION
INSTITUTIONAL FACTORS
MARKET
PRICES
PUBLIC UTILITIES
REGULATIONS
RETAIL PRICES
SOCIO-ECONOMIC FACTORS
STATE GOVERNMENT