Impact of regulatory policy on growth in the United States electric utility industry

Book · Tue Dec 31 23:00:00 EST 1974

OSTI ID:7357624

Ford, A

Since the mid 1960s, the electric utility industry has faced an unprecedented array of serious and interrelated problems. Increased cost of new generating capacity, new environmental regulations, regulatory and siting delays, reduction in the growth of sales, shortages of fuel, and double digit inflation have all combined to force the utilities into their worst financial position in over forty years. A dynamic simulation model has been constructed to assist in the formulation of policy in this troubled industry. This paper provides a brief overview of the model and illustrates its use by simulating the impact of two policy measures: 1. procedural changes that reduce the delay in the regulatory process; and 2. conservationist measures that reduce the rate of growth in electricity demand. The paper concludes that a combination of regulatory changes and conservation are effective in reducing the price of electricity, providing sufficient rate of return to utilities, and insuring that adequate generating capacity is constructed to satisfy future demand for electricity. The conclusion that a reduction in the rate of growth in electricity demand would be beneficial for the electric utility industry is contrasted with industry's traditional pro-growth view. (43 references) (auth)

• Research Organization: Dartmouth College, Thayer School of Engineering, Research Program on Technology and Public Policy, Hanover, NH 03755
• OSTI ID: 7357624
• 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
CHARGES
ECONOMICS
ELECTRIC POWER
ENERGY CONSERVATION
GOVERNMENT POLICIES
GROWTH
MATHEMATICAL MODELS
POWER
POWER DEMAND
POWER GENERATION
PUBLIC UTILITIES
REGULATIONS
SIMULATION
SYSTEMS ANALYSIS