Utilities have money again

Journal Article · Thu Jan 01 04:00:00 EST 1976 · Energy (Stamford, Conn.); (United States)

OSTI ID:7345829

Brimmer, A F

When Consolidated Edison missed its dividend in April 1974, the financial market became conscious of the risk involved in lending to public utilities and investors sought safer investment havens. At the beginning of 1975, the utility finance picture was distressing, but the situation has now changed. The heavy burdens of building programs have become lighter (mainly by a drastic scaling down of planned capital expenditures), the pace of inflation has moderated, and the costs of borrowing have eased as interest rates have declined. State utility regulators have been more responsive to requests for rate increases and the profitability of electric utilities has improved. During the first quarter of 1975, the nation's electric utilities had a profit of 67 cents per share. After a review of the trends in the sources of funds for utilities, the outlook for electric utilities is forecast. The Edison Electric Institute estimates that construction expenditures of investor-owned electric utilities will pick up in 1976 to about $17 billion, and then rise by $2 billion each year thereafter. These gains in capital expenditures imply a reasonably strong recovery in the demand for electricity in the future. (MCW)

• Research Organization: Harvard Univ., Cambridge, MA
• OSTI ID: 7345829
• Journal Information: Energy (Stamford, Conn.); (United States), Journal Name: Energy (Stamford, Conn.); (United States) Vol. 1:3; ISSN ENGYD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
CAPITAL
CHARGES
CONSTRUCTION
ECONOMICS
ELECTRIC POWER
FINANCING
INSURANCE
INVESTMENT
POWER
PUBLIC UTILITIES