Utility diversification
After reviewing the pros and cons of public utility diversification, the author concludes that the balance of public interest is on the side of permitting public utility companies greater freedom to diversify than they now enjoy. He would eliminate the review of individual proposed investments outside of the public utility area on the grounds that regulators have no particular competence in this area. He would also eliminate the regulation of security issuances and dividend payments by the nonpublic utility entities. Regulation should see that the diversifying enterprise is structured and regulation of the utility entity so conducted as to insulate monoply ratepayers from risks as much as possible. This would limit regulation of the nonutility entity to seeing that the total size of the company's commitment to new diversification ventures does not threaten deterioration of the credit of the entire enterprise. 3 references.
- Research Organization:
- Cornell Univ., Ithaca, NY
- OSTI ID:
- 6946065
- Journal Information:
- Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 4:1; ISSN ENJOD
- Country of Publication:
- United States
- Language:
- English
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DIVERSIFICATION
INVESTMENT
PUBLIC UTILITIES
REGULATIONS