Bond financing for joint action. [Participation as tenants in common by two or more utilities of any type]
It is becoming increasingly common for publicly owned utilities, rural electric cooperatives, and investor-owned utilities to engage in joint ownership projects enabling them jointly to construct and operate electric generating plants and related facilities with substantially larger capacity than they could economically finance or utilize individually. Joint ownership consists of participation as tenants in common by two or more utilities of any type in a particular generation or transmission facility. This is usually accomplished through a participation agreement, which sets forth the undivided percentage ownership interest in each facility and establishes entitlements to power and energy in the same proportions. The agreement also establishes the basic legal provisions relating to settlement of disputes, defaults, arbitration and termination, as well as the means of administering and managing the projects. After reviewing the advantages of this joint action, factors discussed for possible participation in the venture include: economics of the project, technology of the project, technical ability of the participants to manage the construction and operation of the facility, and the capability of the participants to meet the financial requirements of the project. One of the earliest joint ownership projects was the Windsor Plant, equally owned by West Penn Power Co. and Ohio Power Co., which was built in 1918. (MCW)
- Research Organization:
- Salomon Brothers, New York
- OSTI ID:
- 7325158
- Journal Information:
- Public Power; (United States), Vol. 34:5; Other Information: Adapted from an address to the Municipal Electric Utilities of Wisconsin annual conference, Stevens Point, Wis., June 3, 1976
- Country of Publication:
- United States
- Language:
- English
Similar Records
Computer-assisted negotiations: bigger problems need better tools
Alternative windpower ownership structures: Financing terms and project costs
Related Subjects
POLICY AND ECONOMY
20 FOSSIL-FUELED POWER PLANTS
ELECTRIC POWER
FINANCING
POWER TRANSMISSION
PUBLIC UTILITIES
ECONOMICS
OPERATION
POWER GENERATION
POWER
296000* - Energy Planning & Policy- Electric Power
290200 - Energy Planning & Policy- Economics & Sociology
200106 - Fossil-Fueled Power Plants- Economics