Prudence and power procurement: Will we preclude utility ownership

Journal Article · Tue Oct 01 04:00:00 EDT 1991 · Electricity Journal; (United States)

DOI:https://doi.org/10.1016/1040-6190(91)90009-I· OSTI ID:6960253

Steinmeier, W D

The United States will need increased capacity for electricity generation as the next century is entered. However, many utility experts believe that electric utilities will be reluctant to invest shareholder dollars in the construction of generating units because of a number of major construction cost disallowances experienced with nuclear plants that were brought on-line in the middle-to-late 1980s. These prudence disallowances have led some to believe that traditional utility construction of its own generating facilities has become too risky. Therefore, enormous resources are being devoted nationally to the promotion of independent power production and to the encouragement of deregulation of electricity generation. It is the author's belief that independent power production should not be promoted as a preferred national policy goal. However, unless the quality and timeliness of regulatory policies improve, the playing field will remain tilted toward independent power production and away from traditional, utility construction of generation. This paper explores ways of performing prudence reviews that are more timely and fair than existing methods.

• OSTI ID: 6960253
• Journal Information: Electricity Journal; (United States), Journal Name: Electricity Journal; (United States) Vol. 4:8; ISSN ELEJE4; ISSN 1040-6190
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
296000 -- Energy Planning & Policy-- Electric Power
COGENERATION
CONSTRUCTION
CONSUMER PROTECTION
DEREGULATION
DEUS
DUAL-PURPOSE POWER PLANTS
ECONOMIC IMPACT
ECONOMICS
ELECTRIC UTILITIES
MANAGEMENT
OWNERSHIP
PLANNING
POWER GENERATION
POWER PLANTS
PRICING REGULATIONS
PUBLIC UTILITIES
REGULATIONS
STEAM GENERATION