How Wall Street views the outlook for utility financing in 1976 and 1977
The financial community is cautiously optimistic about the outlook for electric utility companies over the next 18 months. However, it is openly concerned about recent developments in the stock market and is worried that favorable conditions which brought about 1975's recovery for the industry could quickly deteriorate. If the industry is to prosper, financial conditions require favorable responses from state regulatory commissions. Common stocks still are selling well below book value--a condition that cannot be allowed to exist if the electric utilities are to return to a favorable market condition, analysts argue. That means commissions must continue to be responsive to utilities' pleas for improved earnings. A further complication, according to Ed Van Singel, Continental Illinois National Bank and Trust, Chicago, is that 1976 is an election year. That, he said, could mean state regulatory commissions may be more responsive to consumer and voter arguments against higher electric rates than to utility pleas for further rate adjustment that will allow greater capital attraction. All of the investment bankers, financial analysts, and brokers contacted by EL and P indicated that continued rate relief will be necessary. (MCW)
- OSTI ID:
- 7339770
- Journal Information:
- Electr. Light Power (Boston); (United States), Journal Name: Electr. Light Power (Boston); (United States) Vol. 54:6; ISSN ELLPA
- Country of Publication:
- United States
- Language:
- English
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CAPITAL
CHARGES
ELECTRIC POWER
FINANCING
FORECASTING
GOVERNMENT POLICIES
INCOME
LOAD MANAGEMENT
MANAGEMENT
POWER
PUBLIC UTILITIES
REGULATIONS