Will investors ever put money in utilities again

Journal Article · Mon Aug 20 04:00:00 EDT 1984 · Energy Dly.; (United States)

OSTI ID:6603688

Meyer, E; McCaughey, J

Mr. Meyer, involved with utility financing for 25 years, is extremely pessimistic about the utility industry. He feels that investors will be very slow to put money into utilities in the future unless something really radical is done. With public confidence shaken as badly as it is, he thinks very strong incentives will be needed - preferably reinforced by a system of absolutely lock-up turnkey contracts. He says it will be necessary to get into a system of pricing the output of the plant differently than in the past - that is, pretty much on a flat-rate basis across the 40-year life of the plant (including the construction period as well as the operating period). We're going to have to provide for it with the law and provide for it in ways in which it cannot be retroactively changed. These are the kinds of things that are going to have to be built into each state's regulatory situation. Other questions addressed by Mr. Meyer in the interview include the role of architect-engineering firms; what about the companies doing very nicely at the moment; and the threat of bankruptcy for some companies. In spite of his overall pessimism, Mr. Meyer believes that solution will be found once the necessary level of pressure is brought - electricity is too central a thing to this country.

• Research Organization: Kidder, Peabody, and Co. Inc., New York, NY
• OSTI ID: 6603688
• Journal Information: Energy Dly.; (United States), Journal Name: Energy Dly.; (United States) Vol. 12:161; ISSN ENDAD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
ECONOMIC ANALYSIS
ECONOMICS
ELECTRIC POWER
ELECTRIC UTILITIES
FINANCIAL INCENTIVES
INVESTMENT
LEGAL INCENTIVES
POWER
PUBLIC POLICY
PUBLIC UTILITIES