Huge amounts of capital needed
Investor-owned electric utilities will require $24 to $25 billion in capital funds in 1979, up about $2 billion from 1978. Public utility and rural electric cooperative systems will need, perhaps, another $8 billion. Rural electric cooperatives--some with big loan guarantees from the Rural Electrification Administration--and municipals ought to be able to raise the money they need for their projects. The investor-owned companies will have to go into a tight capital market-place for nearly 60% of the money they need for their projects. Most companies will be able to raise the capital they need through stock or bond offerings, partnerships with foreign banks and institutions, or a combination of these. Some companies already have turned to leveraged leasing (explained in-depth in this article) and others are investigating leasing, even of base-load generating units. But for all investor-owned companies the key to the capital market is continuing, prompt and adequate rate relief provided by state and Federal regulatory agencies. In states where commissions have balked at providing companies with adequate rates of return utilities are into the capital market for only the barest necessities. New methods for raising funds are discussed for TVA and Duke Power. (MCW)
- OSTI ID:
- 6435761
- Journal Information:
- Electr. Light Power (Boston); (United States), Journal Name: Electr. Light Power (Boston); (United States) Vol. 57:1; ISSN ELLPA
- Country of Publication:
- United States
- Language:
- English
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