Analysis of the financial health of the electric utility industry

Technical Report · Mon Jun 11 04:00:00 EDT 1984

OSTI ID:6586663

This report analyzes the past, present, and future financial health of the investor-owned electric utility industry. The 1970's was a financially difficult period for the industry, with 1974 being a particularly poor year. Since 1973, unusually high debt and large construction programs during periods of inflation and high interest rates had a negative influence on the industry's financial health. Although individual regulatory factors were not found to have a significant relationship to the industry's overall financial health, regulation's influence is reflected in the industry's stable profit picture. After 1981, such indicators of financial health as the market-to-book-value ratio of common stock and the rate of return improved. Industry is acting to reduce debt and construction. If inflation and interest rates stay below previous levels, the industry's financial prospects should be more favorable during the 1980's as compared with the 1970's.

• Research Organization: General Accounting Office, Washington, DC (USA). Resources, Community and Economic Development Div.
• OSTI ID: 6586663
• Report Number(s): GAO/RCED-84-22; ON: TI84901871
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
298000* -- Energy Planning & Policy-- Consumption & Utilization
COST
DATA
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY ANALYSIS
FINANCIAL DATA
INFORMATION
MARKET
OPERATING COST
POWER
PUBLIC UTILITIES