Essays in the regulation of electric utilities

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1987

OSTI ID:6296754

Mishra, B

The impact of alternative methods of selecting public utility commissioners and other politically determined variables on three major aspects of privately owned and regulated electric utilities was examined. First, it focuses on the bond ratings of these firms. Second, it examines the profitability of regulated electric utilities by estimating the accounting and conditional internal rates of return. Third, it investigates the overall and inter-group price inequalities that results from differential customer-class pricing schemes. The analysis indicates that elected PUCs significantly increase the probability of lower bond ratings. This implies that the electric utilities under the jurisdiction of elected PUCs incur higher costs in raising capital in the debt market. Other politically determined variables such as automatic fuel adjustment clause, staff size, PUC budget, and the number of commissioners are also significant in influencing bond ratings. The empirical evidence suggests that the method of selecting PUC commissioners is an important determinant of the (conditional) internal rate of return. Electric utilities under elected PUCs earn higher internal rates of return than the firms under appointed PUCs. In contrast, the selection method has no significant influence on the accounting rates of return.

• Research Organization: Alabama Univ., Birmingham (USA)
• OSTI ID: 6296754
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
296000* -- Energy Planning & Policy-- Electric Power
CAPITAL
DATA
ELECTRIC UTILITIES
FINANCIAL DATA
FINANCING
INFORMATION
INSTITUTIONAL FACTORS
POLITICAL ASPECTS
PUBLIC OFFICIALS
PUBLIC UTILITIES
REGULATIONS
STATE OFFICIALS