Some observations on the taxation of regulated utilities

Journal Article · Thu Oct 13 04:00:00 EDT 1977 · Public Util. Fortn.; (United States)

OSTI ID:7279122

Corey, G R

The possible impact of proposed tax reforms on the ability of regulated utilities to attract capital is examined. In spite of projected consequences if electric shortages should occur, the ability of utilities to raise funds is viewed as poor unless changes are made in regulations and tax laws. These changes could include nationalizing utilities or less-drastic systems of investment tax credits, accelerated depreciation and income tax deferrals. Elimination of these measures could, however, result in a reduced internal cash generation by penalizing investors. Utilities suffer from large, long-term plant investments, high construction costs, a lag in internal cash revenues because rates are inadequate to cover costs, high dividend payouts, and low credit ratings and stock prices. Although pressures are building for more equitable tax integration to eliminate double taxation of dividends, such attempts are seen as posing a potential disadvantage to the utilities. (DCK)

• Research Organization: Commonwealth Edison Co., Chicago
• OSTI ID: 7279122
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 100:8; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
CAPITAL
CHARGES
CONSTRUCTION
ECONOMIC IMPACT
ECONOMIC POLICY
FINANCIAL INCENTIVES
INVESTMENT
PUBLIC UTILITIES
REGULATIONS
TAXES