Motivation for electric-utility diversification

Journal Article · · Electr. Perspect.; (United States)

OSTI ID:6658437

Edelston, B; Maschoff, D; Sherman, A

Investor-owned electric utilities are increasingly drawn to diversification because of financial problems. The high risks of the capital-intensive electric utility industry make diversification an attractive counterbalance for exploiting underutilized assets, such as expertise in engineering, construction, conservation technology, and other areas. A simulation of scenarios examines the case for diversifying into a related and unregulated business and into an unrelated and unregulated business to determine the potential economic and financial impacts. The risks and investment levels are found to be manageable, but any program to diversify should view the reliable and low-cost deliver of electric power as the utility's main objective. The purpose of diversification should be to increase flexibility, not to improve the finances of a regulated business. 7 figures. (DCK)

• Research Organization: Edison Electric Inst., New York, NY
• OSTI ID: 6658437
• Journal Information: Electr. Perspect.; (United States), Journal Name: Electr. Perspect.; (United States); ISSN ELPED
• 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
DIVERSIFICATION
ECONOMICS
ELECTRIC UTILITIES
FLEXIBILITY
MANAGEMENT
MECHANICAL PROPERTIES
PUBLIC UTILITIES
TENSILE PROPERTIES